Increasing Profits by Lowering the Cost of Goods Sold
Wholesale distributors and retailers get squeezed as consumer price competition makes it difficult to just apply the cost increases to the selling price.
One way to hedge against ever tightening profit margins is to take advantage of investment buy opportunities based on pre-announced price increases from suppliers. In other words, forward buy on the current cost just before the cost increase takes effect. After all, while selling generates revenue, better buying generates better profit. Learn about the factors you should consider when taking advantage of an investment buy opportunity.