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Surplus Bearings and How They Can Help You Save

Every business wants to do it, save money on their overhead. But it’s not always as easy as it sounds. Many times, so much of our operating costs are fixed expenses, mortgage, advertising budgets, it make it really hard to find the fat to trim. But one place that most business owners fail to look is at their inventory.

Think about it, if you could cut the cost of the inventory that you’re selling, you would lower your overhead and thus, increase your profit margin. Being in the transmission or automotive repair business, you often think that your prices for parts will never go down, so you wisely budget for them to stay where they are. (Or in some cases, maybe even go up.)

But just how do you do that? One great way is to buy your transmission bearings directly from the manufacturer. Buying up some of a manufacturer’s surplus, or excess allows you to get some of the parts you need at some great prices. The theory behind the surplus discount is that these manufacturers need the space in their warehouses so that they can continue to manufacture orders. These surplus parts are there, taking up that needed space, and have to go. So, they are willing to sell these items at a discounted rate. Many times, the manufacturer will give even deeper discounts to those buyers who in buy in bulk, just to get the bearings off of their shelves.

Just how much can you save by buying in surplus? Well, in all honesty, it depends on how much you buy. A large shipment may allow you to buy each piece priced below cost, or the manufacturer’s cost to make the product. If this is the case, then their loss is your gain, in a huge way. Imagine buying all of the transmission bearings you’ll need for the year, and getting them at a price cheaper than it costs to make them….talk about savings!

Buying from the manufacturer doesn’t give all of the bells and whistles you would have by buying from a parts supplier, but those things are exactly why there’s so much difference in the price. Having to pay for TV ads, and all of the other things you see at most auto supply stores simply adds to the price for each of those bearings.

Because you’re purchasing from the manufacturer, you’ll incur additional charges for shipping, especially for smaller orders. This is simply because they usually have large shipments go out to their clients in semi-trucks, and it would be ridiculously expensive to hire an 18-wheeler to bring one small box of transmission bearings to your store.

Cutting the price of your inventory is an excellent way for an automotive service center to increase their profit margin. It’s really just simple economics, the less you spend on your materials needed to provide service, in this case, transmission bearings, the more profit you have left over. Buy in surplus is a great way to cut the price of your inventory.

About the Author

Surplus Bearings and Transmission products - Steel City Bearings Ltd buys Surplus Bearings and transmission products in bulk, job lots, surplus stock, stock clearance, bankrupt stock.

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