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Save Money By Buying Surplus Bearings

Discussion in 'General Business' started by mili 123, Feb 6, 2010.

  1. #1
    With the economy in the current state that its in, were all looking for ways to make our dollars stretch farther. If youre in the business of repairing transmissions, buying surplus transmissions is an excellent way to lower your overhead costs, and thereby increase your profit margin.

    Most businesspeople are aware that lowering your overhead is the very best way to increase your profits. This is because you lower the price for your parts, and you at that point, can choose to either pass that savings on to your customers, or you can keep your prices the same, and then make more money.

    But just how do you go about buying parts like transmission bearings in surplus? This is the thing that most people arent aware of or wont tell you. You can actually save a lot of money by buying from parts manufacturers, than from buying from auto parts suppliers. Because youre buying them from the manufacturer, they will sell their surplus, or parts that are left in their inventory at a discounted rate. This is great because if you can buy the bearings in bulk, you can save quite a bit of money as opposed to going to your local parts supplier and buying the same number. This is because by the time that the parts have reached this link in the chain, theyve been through several hands. Each one of these middlemen, or the stages in the manufacturing chain, wants to make sure that they get their share of the profit from the sale of the bearing. Because the auto parts supplier is the last link in the chain, their cost is the highest. So they wont be as flexible as the manufacturer when it comes to the lowest price that they can make a profit on, youll be paying full price.

    The best way to purchase surplus from a manufacturer is to contact their sales department. There, you will find out just how much they are willing to sell the bearings to you for. Of course, you will have to figure in for things like freight or shipping, and adding these things into the cost of purchase, you may find that the price is less or more than what you usually spend. Youd be hard pressed to find that youre spending more, even with shipping for bearings from the manufacturer than for the same parts from an auto parts supply store.

    Buying surplus bearings from a part manufacturer gives you another advantage, you can buy enough bearings to last as long as you need, and your savings will be even better. This works great for transmission repair shops, because their volume of services performed are transmissions, so youll need a lot of bearings. Its also an excellent possibly that the more parts you order at once, the more of a discount they will be willing to give you. So you can only imagine how much of a savings you can have by buying surplus bearings from the manufacturer than from an auto parts supply store.
     
    mili 123, Feb 6, 2010 IP