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Dealing with suppliers – January Update: you have nothing to lose

Tom Winnifrith
Sunday 27 January 2013

You may remember that I suggested to you as a new year resolution/ small business tip that you review your contracts with key suppliers as a way to boost profitability. I drink my own medicine and so at Clerkenwell’s finest Celtic Italian restaurant, The Real Man Pizza Company , I have started to practice what I preach.

In case you have not taken my advice, I offer this as a tale of encouragement.
The cost base at Real Man can be split roughly speaking property 4, staff 6 all other costs 5. We will address the property issue in time – I believe our rates are too high and an appeal should be made in due course. Staff – there is nothing that can be done and so that leaves suppliers, all of whom have been in place for an absolute eternity. In such a scenario there is a danger of complacency with suppliers sticking in annual increases on the assumption that nothing will every change.

Suppliers all claim to be your friends. Long standing relationship, blah, blh, blah. The reality is they are out to maximise margins just like you are.

on 24n.biz | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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