One way to achieve a better margin for products you sell is to take the settlement discount whenever possible. Many newsagent suppliers offer this yet the majority of newsagents do not take it.
I have heard of newsagents not taking a 20% settlement discount – preferring 30 day terms. You could pay the bill on time with your credit card, take the 20% and be better off. This doesn’t make sense to me. In one business I looked at recently, they could have added more than $6,000 in a year to their bottom line profit by taking settlement discounts. Who wouldn’t want $6,000 extra profit?
Mark,
Do you know what suppliers offer this, as in our store I know of only a couple. We always do it, but wish we had more suppliers doing it.