A critical stage, not only for our finances, but for our entire brand.
It directly affects our sustainability, as it determines not only the selling price but also the quality of our products.
Choosing the right materials can be a very difficult task. Times are difficult for all of us and at the same time our raw materials are an area where there is no room for discounts.
Moreover, raw materials are not the only cost we have. In fact, often the collateral costs are more than the materials themselves.
And of course, in the price of the products we have to take into account our profit, since we make our living from it.
Fortunately for us, there are ways to reduce our costs while offering high quality products.
Let’s look at some of them…
Ways to reduce the costs of raw materials:
1. New/additional suppliers:
Often, either out of habit, lack of time, or because we are satisfied, we get attached to certain suppliers.
However, especially in the case of branded materials, it is extremely likely to find exactly the same material at a better price from another supplier, where we may even find several equivalent – and sometimes even better – alternatives to the non-branded materials we use.
A market survey, often frequent, is therefore extremely useful.
All the more so in periods before the holidays, when suppliers want to sell with the same eagerness as we do.
2. Supply of materials from individuals:
Of course it is an occasional thing, but it is still a lifesaver sometimes.
Many of our colleagues sell materials that are no longer needed, and there are many who started experimenting with construction and for some reason ended up not doing it.
Add to this category also those who close their business, e.g. due to retirement, and sell their goods at cost prices.
Finally, there are also people who have nothing to do with space but sell their personal items unused or in perfect condition, and from these items we can use them in our constructions.
Personally, I have taken advantage of such opportunities many times, either by selling what I didn’t use in the end, or by buying.
And to be honest, some of the people I bought from have become regular customers.
The best way to take advantage of such opportunities is to register on classifieds sites, search for what you need and save your searches so that you can be notified when there is a new ad.
You can also “follow” sellers you are interested in.
In addition, you can join social media buying and selling groups.
In addition to monitoring the posts in these groups – which admittedly are too many and usually irrelevant to what we’re looking for – you can also post a search post with what you’re looking for.
One post at a time, so you can easily check it.
And of course, ask your friends and family to let you know when something like this comes to their attention.
Don’t forget, if you are buying from a private individual at a distance, before you make any decision to ask to see a video of the item.
Also ask the seller to write something specific on a piece of paper (say the word good morning) and put the piece of paper next to the item.
In this way, you ensure as much as possible that the object actually exists, what condition it is in and usually its dimensions and other details (e.g. the texture of a fabric) that cannot be seen in photographs.
3. Discounts – Offers – Cheap Packages:
Try as much as possible to buy your ingredients together. Apart from avoiding shipping costs in most cases, there are many times when a discount is offered on orders over a certain amount.
Similarly, it’s a good idea to combine your purchases with those of a friend so that you both benefit more.
Also, some eshops offer additional discounts by choosing a specific payment and/or shipping method.
Similarly, the opposite is also true. Often, some payment methods have an extra charge.
Finally, choose the packaging you buy wisely. Large packs for materials you use a lot, small packs for materials you are buying for the first time or don’t use often.
4. Recycling – Reuse:
A solution particularly useful for sample cases.
Many of us – if not all of us – have made samples that are just lying forgotten in a cupboard. Either they didn’t turn out as we planned, or we modified the design so much that they are no longer useful, or they weren’t good enough to sell, or we made them in the first place just for photography.
By disassembling them, we can quickly make new samples, reducing our costs.
It is a particularly good practice in the case of new products, which we are still experimenting on.
5. Time is Money:
Usually what we look at when choosing materials is its quality and price.
But there is an additional criterion that can prove to be extremely costly depending on what we make. And that is the application of the material.
I give you an example…
Let’s say the final product is a coaster and we need to choose a varnish. We choose a polish that is cheaper but takes 24 hours to dry.
In practice, this means that for a minimum of 24 hours we cannot process the object. Instead, we should be particularly careful until it is completely dry.
Similarly, we tie up the space in which we dry the coaster.
At times like the Easter shopping season, when the aim is to handle as many orders as possible at the same time, all this significantly limits the number of orders we can handle at the same time.
Consequently, this varnish, although cheaper, actually costs us money.