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One of the most critical aspects of procurement that requires careful consideration is the quality of procured goods. Most entrepreneurs consider cost before everything, but quality should always be the focus. If the quality of goods procured is substandard, it will jeopardize the entire procurement process.
To some business owners, quality products and low cost do not go together. However, a higher price does not necessarily mean high quality, and a lower price sometimes does not mean low quality.
You have to ensure that the items procured meet quality standards, as some products can be purchased at low prices but will cost more in the long run due to repairs and processes required to manage them. Therefore, considering the cost of goods should go beyond the immediate cost of procurement to include the cost of management and maintenance in the long run.
To successfully source for and procure high-quality goods at a lower price, it is essential to understand the concept of quality and affordability in the market economy, where competition plays a significant role.
The Relationship Between Price and Quality in Procurement
This notion, or age-longstanding belief that high price means high quality and vice versa, is untrue.
Regardless of a product's quality, market competition, the manufacturing process, the process of obtaining the raw material, the demand for the product, and seasons can influence the prices of products.
In some cases, higher prices may indicate high quality for a product, but buyers should always use other yardsticks to measure the value of a product and not rely on the cost alone.
Reading recommendations on the product, interviewing past users of the product, and monitoring the warranties offered by the manufacturers are excellent ways to know its quality.
How can one find and procure high-quality goods at a low price
1. Bulk buying:
In most cases, products come cheaper when bought in bulk, and some manufacturers or suppliers place discounts on products depending on the quantity purchased. The more you buy, the more affordable the item or the higher the discount.
However, it is advisable to buy in bulk when there is a considerable demand and a large market base for that product. The products also have to be non-perishable items.
Therefore, there are three critical factors to remember with this idea:
The demand for the product.
The shelf life of the product.
Storage capacity for the product
2. Clearance sales:
Sometimes, manufacturers or suppliers may want to sell out a particular product at auction prices for various reasons, providing a good opportunity for sellers and consumers to procure high-quality products at a meagre price.
It could be that the company wants to get old inventory out and create room for new products, phase out a particular brand or model of the product, and move on to a newer or modern model to keep up with the demand and competition.
However, in buying clearance products, it is essential to ensure that the goods still have market demand, are not damaged, and have a long-term expiration date.
3. Buying unbranded or less popular products:
It is a fact that some brand names have penetrated the market, hence why they are associated with high quality and are usually very expensive. However, there are products from less famous brands that are still trying to enter the market but are of high quality and can compete with the branded products.
Also, look out for generic store goods that are not branded but are of high quality, cheaper than the less popular brands, and way more affordable than the popular ones.
Usually, these unbranded products contain the same ingredients and components as the branded ones. They can sometimes be better than the branded ones because they are still trying to enter the market and create a customer following, so they offer premium quality.
Moreover, some branded goods are simply selling their name and image, which has penetrated the market, and the product may not necessarily be of premium quality.
4. Research online:
A little online search and review will tell us if a product is of good quality, if the price is competitive compared to other products in the market, and other important information.
While carrying out online research on a product, it is essential to:
- Read reviews from different people.
- Consider the reviewer's credibility to ensure it's not coming from a competitor.
- Check the number of sales.
- Look out for a return policy.
- Find out about recalled/returned products.
5. Check around different sellers and compare prices:
It is usually not advisable to concentrate on one supplier or manufacturer; this is why market research is a crucial aspect of procurement. Research the market, find several suppliers that offer the product you want, read the reviews on their products, and compare their prices before making a buying decision.
6. Negotiate better:
A buyer's negotiation power will go a long way in determining the price at which a product will be purchased, irrespective of the quality. When looking for low-cost but high-quality goods, the first thing to do is to do market research to find high-quality goods and then bargain for the best price, which may require a particular skill, additional time, and effort.
It is important to:
- Compare the prices offered by different suppliers.
- Look for better deals when unsatisfied with the one a supplier offers.
- Be on the lookout for promos, special offers, and discounts.
- Negotiate with the manager rather than the salesperson.
Buying high-quality products at affordable prices from any country is possible. By conducting thorough research, identifying reliable suppliers, and leveraging the expertise of a sourcing agent like SARA PROCUREMENT SERVICES LIMITED, you can source products that meet your quality standards without compromising your budget.
Visit our physical office space at 3 Fatai Irawo Street, Ajao Estate, Airport Road, Lagos, Nigeria, or any of our warehouse touch point locations worldwide to learn more about us and utilize our services.
Our 247-email correspondence is hello@chinatolagos.com. Contact us today.
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