3 Ways to Reduce the Impact of Price Increases
Keeping costs down is a team effort.
Here are three ways you can reduce the impact of price increases on your business.
1. Buy in Volume for Greater Discounts
If you have a large-volume order, we can often provide better pricing. Larger orders are more efficient through the factory, and we can save on bulk raw materials and freight costs. If not, we can work with you to hold onto your stock and do a monthly release plan if you have a PM plan set up or a blanket order.
2. Set Up Blanket Orders
Customers typically change filters on a regular schedule. Setting up a longer-term agreement helps lock in low pricing and ensures that the filter is ready to go when they need it. There are a lot of ways to do this, but the main idea is to obtain a commitment to buy a certain quantity over time at an agreed-upon price. This helps everyone to be able to plan for the future.
Sidco is currently offering blanket order agreements at our current pricing. If you order now, we can lock in pricing for the length of the blanket agreement. This is also a great way to keep your inventories low while helping to make sure that your filters are readily available. We can keep a certain quantity on hand ready for shipment within one business day! You won’t have to worry about getting a shipment of filters all at once and having to store them, either. We’ll work out a schedule with you or you can just let us know when you need them, and we’ll be ready to ship at a moment’s notice.
3. Reduce Your Lead Times to Less than Two Weeks
At Sidco, we pride ourselves on quick turnaround. 97.3% of our orders ship in less than two weeks – some even ship within 5 business days! With a blanket order, we can have your order on the shelf and ready to go. Sidco’s short lead times can help you save in several ways:
• Reduce your rush orders.
Your order is already being processed at a breakneck speed, so you won’t have to worry about getting your last-minute filters done on time.
• Save on manufacturer expediting fees & premium freight costs.
Most manufacturers have a standard turnaround time from three to four weeks! At Sidco, if you need your order in one week, you’ll avoid paying expediting fees and premium freight costs. If you need it even faster, our rapid-response fees are very competitive.
• Reduce your inventory and save space.
There’s no need to build a reserve of filters at your site or your end user’s site. Just think of all that extra floor space you’ll have in the stock room! You’ll save inventory dollars, too, since you can place an order and have your product within a week.
• Prevent product damage with reduced handling.
Not only will you save money and space when you don’t have to stock extra filters, but they also run the risk of being damaged in storage. With our blind shipping and private labeling capabilities, we can ship directly to your end-customer to eliminate that extra leg of shipping and handling.
• Fewer worries about equipment obsolescence.
Let’s face it, sometimes a company will stop making replacement filters for an older model machine. Instead of scraping up the money to buy a new machine, talk to us first. Sidco will manufacture those OEM replacement filters for that older model machine.
Here at Sidco, we do all that we can to mitigate the impact of cost increases in our supply chain, including:
- Continually improving our internal processes to ensure we are running at the highest efficiency level, while still maintaining our superior customer service.
- Working with our suppliers to get the most aggressive pricing possible.
- Increasing our stocks to keep our lead times low and achieve better pricing.
Sidco is confident that even with the increase, our pricing will remain among the lowest in the industry. We will do everything we can to remain competitive with our pricing, and we are committed to working with you to help reduce the impact of inflation.
Mark Morrone, our Director of Sales and Business Development, is available to assist you with examining ways to mitigate price increases or reduce costs.
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