You may come to a point when you have to decide whether it’s more economical to order a single item or have it in bulk. Each one of them offers various advantages and disadvantages. It would depend on several factors such as budget, timeline, and proximity. You can make an informed decision by understanding the pros and cons of each of them. Read through this blog to have a better overview of what’s the right choice for you.
Advantages of Single Orders
When you say single order, it means that you are ordering one item at a time. This means that your order is small as compared to bulk buying. There are several advantages when it comes to ordering a single item.
Lower Upfront Costs
Imagine that you want to buy an advertising flag from a start-up company. Since you are only ordering a single item, you are not required to come up with a large amount of money to make the order. You pay for the price of the flag you’re getting. This is beneficial for those who have a limited budget for their marketing spend. If you are running a business with constraints on your cash flow, you can still do minimal advertising by getting single-order buntings, flags, or pop-up banners.
Lower Risks
When making a single order at a time, you have minimal risk when it comes to uncontrolled factors such as items getting lost, failure to be delivered on time, market demand changes, and other situations that could put constraints on your business. If you are just starting up your business, it is advisable to get single orders first. Assess the impact of your advertising flag and reorder when you see that it’s effective. Imagine ordering hundreds of advertising flags only to find out that the messaging is not fit for your target audience. This will put a lot of stress in your business especially if you are working around a small capital to operate your whole business. Get a single order, test, and reiterate over time.
Better Flexibility
Let’s say you have a new line of products that you want to advertise, you can get a single order of pop-up banners first and evaluate how your market is going to react. If the impact is positive you make bulk orders and also try out other marketing materials such as advertising flags, customized tents, or custom table covers. You can be flexible with your order depending on the ongoing demand of your target market.
Disadvantages of Single Orders
Although there are pros when it comes to making an order, there are also cons that you need to be aware of.
Timing
Since you are only ordering one item, if you need to order more you’ll have to wait for days again for it to be delivered. Let’s say you’ve ordered a single advertising flag which took you three days to be delivered. After using the flag and realizing that you need more, you’ll have to place another order. This will require you to wait another three for it to be delivered. Then after a week, you’ve realized that you needed more, and again this will require you to wait for a few days again for the delivery. If you are working on a specific timeframe for your marketing campaign, this system or reordering is not ideal. You’ll waste time waiting for items to come. Unlike making bulk orders, all items will get to your place all at once. No need to wait for days.
Discounts and Promos
It’s very unlikely that you will be offered a special rate, or could avail a discounted price when ordering a single item. You’ll miss out on this opportunity since most discounts are offered on bulk orders only. Although there could be some merchants offering promos on single purchases, instances like these are very rare.
Advantages of Bulk Ordering
Bulk ordering means that you’re getting the items in large quantities. The idea is that since you’re getting a bigger volume of the item, they are at a discounted rate as compared to a single ordered item. Below are some of the pros of bulk ordering.
Cost Savings
Since the items that you’re ordering are many, a discounted price is applied. In turn, this lessens your cost in procurement and increases your profit margins. If you have the money to spare for a large quantity order, better make the bulk order as it could be more cost-effective for your business in the long run.
Inventory Levels Maintain
When running a business, one thing that you don’t want to happen is running out of stock for your customers. This will hurt your sales as well as your customer service. If you want to maintain a high level of customer satisfaction and brand loyalty, make sure that you don’t run out of items to sell.
Better Supply-Chain Operation
You will have a smoother supply-chain operation when doing bulk orders. You won’t be waiting for days
weeks or months to have your orders delivered. You won’t also be stressing too much about replenishing your supplies. In turn, you can spend less administrative time. You can use your time better in other areas of growing your business.
Disadvantages of Bulk Orders
Limited Storage Space
If you are ordering a large volume, it will require more storage space as compared to a single order. Consider the availability of your space before making a bulk order.
Risk of Waste
If you are not able to sell or dispose of your products in time, you could be up to a revenue loss. If you are just starting your business, remember that every money counts and no money or other resources should be wasted.
No Returns
It is more difficult to return items that you bought in bulk as compared to a single order. Think of buying a large volume of flags from a supplier only to return them after a day cause you’ve ordered the wrong one. Negotiating with the supplier could get tricky since there’s a large upfront of money involved. Unlike returning a single order flag, it’s more likely that your supplier will accept it.
Tips for Making Bulk Orders
When you are ordering in bulk, consider these factors first before making any payments.
Research About Your Supplier
Negotiate with legitimate suppliers only. Do the due diligence of researching the supplier or manufacturing you are dealing with. Remember that you will have to make a bigger payment when making bulk orders as compared to single ones. Read the customer reviews and ask for feedback from people who already made their orders before yours.
Compare prices
You’ll want to get the best value for your money so make sure to shop around first. Compare prices from one supplier to another so you can get the best deals in the market. Do not make a purchase yet from the first shop you’ve talked to.
Read the terms and conditions
You’ll find it beneficial to read through the fine print when you have an item to return or something to complain about. This will also educate you when it comes to other fees and shipping matters.
Ask for sample
If you’re getting a lot of items from them, it’s better to ask for sample products first. Most suppliers offer a test or sample items delivered to your address before making the bulk order. This will give you an idea in terms of the timeline and quality of items.
Check for discounts and promos
Never hesitate to ask for discounts and promos. Remember that you are making a bulk order, this means that you are bringing in big business to their company. Asking for discounted rates will save you money and use your marketing budget in other areas.
Now that you have some idea of the advantages and disadvantages of single order and bulk, you can make a better decision. Consider the right amount of balance when it comes to cost, efficiency, and satisfaction with their business. Analyze the market demand and the cost-benefit before making any purchase.
