Suz Pathmanathan
Let’s face it: sluggish sales, tightened client budgets, and increased logistics costs haven't made 2024 a standout year for many distributors in the industry. And while an"anti-swag" sentiment has been brewing for some time distributors can combat it by emphasizing the value and messaging of their products as well as understanding the power of on-demand spot buys.
Imagine dodging the dreaded budget overages while customizing the best products from top suppliers all on one beautifully Brikl-y platform. So grab your calculator and use it as a compass to navigate the wonderful world of strategic spot buys—where savings aren’t just possible, they’re guaranteed.
So, Why Spot Buy?
A spot buy is the purchase of goods or services at a one-time negotiated price. In the promotional products industry, spot buy purchases are typically made for a specific project or event, and are often made outside of a normal contract with a supplier. They are a great way to secure products that might be out of stock or a way to fulfill an order with a tight deadline. They are also used to take advantage of special pricing when a customer needs a large quantity of a particular product. This is especially useful during the holiday season when customers are looking for last-minute gifts and products to use as marketing tools.
Spot buys are a great way to procure items when needed, where they're needed, and how you want them. This is especially advantageous if you're managing orders with tight budgets or looking to fill holes in your current inventory. Unlike traditional orders, spot buys do not require large minimum order quantities and they can be shipped directly to the end-user. This eliminates the need for distributors to manage, store, and ship the merchandise themselves.
Don’t underestimate the power of spot buys—these transactions can be a great way to get your hands on the right product at the right price. It’s also a way to test new products without committing to large quantities.
This agility allows businesses to take advantage of fleeting opportunities while keeping budgets intact. That's right; spontaneity doesn't have to be booking a 6-month vacation to Bora Bora, it can be a strategic spot buy!
Spot Buy Benefits
1. Speed
Perhaps the greatest benefit of spot buys is the speed at which they can be completed. The procurement process is often a lengthy one, with many steps and approvals needed before an order can be placed. With a spot buy, all of this is eliminated. You can quickly place an order for a specific product and have it delivered in a matter of days.
2. Saving
In addition to the speed of spot buys, there are also cost savings to consider. When you purchase a product through traditional channels, you’re often paying a premium for that product. With a spot buy, you’re getting that product at a discounted rate, which can add up to significant savings. This is especially true during the holidays when supplier discounts are typically higher.
3. Flexibility
Spot buys give you a lot of flexibility when it comes to sourcing products. You’re not limited to the products that are available through traditional channels. Instead, you can source products from anywhere in the world, which means you can get exactly what you need when you need it.
4. No Minimum order Quantity
With traditional orders, you’re often required to order a minimum quantity of a product. This can be a problem if you only need a small amount of a particular item. With spot buys, there is no minimum order quantity, so you can order exactly what you need without any excess inventory.
5. Risk Management
Spot buys also help with risk management because they allow you to diversify your supplier base. This means that if one supplier is unable to fulfill an order, you have other options available to you. This can help mitigate the risk of supply chain disruptions and ensure that your orders are fulfilled on time.
6. Competitive Advantages
Finally, spot buys can give you a competitive advantage in the marketplace. By being able to source products quickly and at a lower cost, you can offer your customers better prices and faster delivery times. This can help you stand out from your competitors and attract more business.
Spot Buy Sourcing Strategies
Before you start looking for products to source through spot buys, it’s important to know exactly what you need. This includes the type of product, quantity, quality standards, and delivery requirements. Having a clear understanding of your needs will help you quickly identify and secure the right spot buy opportunities.
Building relationships with suppliers is key to successful spot buys. By developing a good working relationship, you can establish trust and open communication, making it easier to negotiate favorable terms for spot buys.
And keep an eye on market trends and seasonal demand to identify potential spot buy opportunities. For example, if a particular product is in high demand during the holiday season, you may be able to source it at a lower cost through a spot buy.
Sounds like a lot of manual labor? That’s where Brikl comes in. Its vast supplier and decorator network takes the guesswork out of sourcing as only top-selling products are pulled in, making it easier to find the products you need quickly. And as prices have already been negotiated for you, you can often source your items at a lower cost.
Spot buys also require flexibility and quick action. When an opportunity presents itself, you may need to act fast to secure the product before it’s gone. That’s why setting up on-demand webstores in 15 minutes with Brikl will give you a seriously competitive edge. All delivery times are tracked through the platform, and as only top suppliers are used, you never need to worry about quality.
Challenges of Spot Buying
While spot buys offer many benefits, there are also some challenges to consider. Here are some pain points we’ve heard straight from the mouths of distributors:
1. Limited Availability
“One of the biggest challenges of spot buying is the limited availability of products. Spot buys are often available on a first-come, first-served basis, and if you’re not quick enough, the product may be gone. This can be frustrating for buyers who are trying to secure a specific product or quantity through spot buys”.
💡Solution: Brikl sources products on-demand, which means the likelihood of your desired product being out of stock is minimal. If this does occur, we work with our network for real-time resolutions on your behalf.
2. Unpredictable Prices
“Spot buys are often available at lower prices than traditional sourcing methods, but the prices can be unpredictable. This is because spot buy prices are influenced by market trends, demand, and supply. If you’re not closely monitoring these factors, you may miss out on a good deal or end up paying more than expected”.
💡Solution: Brikl’s platform integrates with suppliers and vendors, allowing real-time updates on pricing and stock availability. By having access to current market data, you can make informed purchasing decisions and act quickly to take advantage of favorable spot buy prices. You can also set custom pricing within your store so you can automatically adjust prices in response to market shifts.
3. Quality Concerns
“When sourcing through spot buys, there is always a risk of receiving products that do not meet your quality standards. This can be a challenge, especially if you’re sourcing products for a specific project or customer. It’s important to thoroughly vet suppliers and their products before making a spot buy purchase”.
💡Solution: Brikl’s platform enables businesses to connect with trusted suppliers. By integrating suppliers into the system, businesses can view product details, images, and specifications before committing to a purchase. This transparency helps in evaluating product quality and suitability for specific projects.
4. Supplier Relationships
“Spot buys often involve working with new or unfamiliar suppliers. This means you may not have an established relationship or history with them. This can make it challenging to negotiate favorable terms or ensure timely delivery. It’s important to build relationships and trust with suppliers to mitigate these challenges”.
💡Solution: Brikl allows businesses to manage suppliers within the platform. While it doesn’t vet suppliers directly, this feature gives companies a structured way to store information about suppliers, track product offerings, and manage orders. This centralization helps businesses keep an overview of their suppliers, aiding in building relationships over time.
5. Time-Consuming
“Spot buying can be time-consuming, especially if you’re constantly monitoring market trends and searching for opportunities. Additionally, the spot buy process often involves multiple steps, such as vetting suppliers, negotiating prices, and coordinating deliveries. This can take up valuable time and resources for your team”.
💡Solution: Businesses can create custom product catalogs from top-selling items, eliminating guesswork. This allows for quicker updates and provides a ready-to-go selection that minimizes the back-and-forth typically required when coordinating new spot buys.
6. Lack of Consistency
“Spot buys are not a reliable sourcing method and should not be relied on for consistent supply. This is because spot buys are dependent on availability and market conditions, which can vary. Rely on traditional sourcing methods for consistent supply and use spot buys as a supplement when necessary”.
💡Solution: Brikl’s platform allows businesses to connect with multiple suppliers, facilitating access to a broader product range. This setup helps businesses diversify their supply sources and reduces the risk of over-relying on spot buys from a single supplier. By having multiple suppliers integrated into one platform, businesses can balance their stock with traditional suppliers while using spot buys as a supplementary measure when needed.
Achieving Compliance in Spot Buying
Ah, compliance in spot buying, also known as herding cats while juggling oranges. Get a clear plan that makes everyone sing the same tune, or else it's a recipe for chaos.
Here are some tips for achieving compliance in spot buying:
1. Establish Clear Guidelines
The first step in achieving compliance in spot buying is to establish clear guidelines for the process. This includes defining the roles and responsibilities of everyone involved, as well as outlining the steps for sourcing through spot buys. Having a set procedure in place can help ensure that everyone is on the same page and following the same guidelines.
2. Communicate Expectations
Communication is key to achieving compliance in spot buying. It’s important to clearly communicate your expectations to all parties involved, including suppliers and internal team members. This can include deadlines, quality standards, and any other requirements that must be met.
3. Vet Suppliers Thoroughly
It’s important to thoroughly vet suppliers before making a spot buy purchase. This includes researching their reputation, quality standards, and delivery capabilities. It’s also a good idea to request samples or conduct a pre-shipment inspection to ensure the products meet your standards.
4. Monitor Market Trends
As mentioned earlier, spot buy prices can be unpredictable. To ensure you’re getting a fair price, it’s important to monitor market trends and compare prices from different suppliers. This can help you negotiate a better deal and avoid overpaying.
5. Keep Detailed Records
Keeping detailed records of your spot buy transactions can help ensure compliance and provide a paper trail in case of any issues. This can include purchase orders, invoices, and any communication with suppliers.
6. Regularly Review and Evaluate
It’s important to regularly review and evaluate your spot buying process to identify any areas for improvement. This can help streamline the process and ensure compliance in the future.
7. Use Technology
Technology can be a useful tool in achieving compliance in spot buying. There are software programs available that can help streamline the process, track purchases, and monitor market trends. Additionally, some programs offer supplier management tools to help vet and manage suppliers more effectively.
8. Provide Training and Support
Lastly, providing training and support to your team can help ensure compliance in spot buying. This can include educating them on the process, guidelines, and expectations, as well as providing resources and support when needed.
Realizing Cost Saving Through Spot Buying
And let’s be honest; nothing feels quite as good as knowing you spent less than your buddies who thought they were getting “the best price.” They just got played by their own spreadsheets!
While spot buying can come with its own set of challenges, it can also offer cost savings opportunities for your organization. As mentioned earlier, spot buy prices can fluctuate based on market conditions. This means that you may be able to secure a better deal by purchasing during a low market period. By monitoring market trends and capitalizing on these fluctuations, you can save money on your spot buy purchases.
Spot buying can also offer an opportunity to negotiate with suppliers. Since spot buys are often made on a one-time basis, suppliers may be more willing to negotiate on price or offer discounts. This can help you save money on your purchase and avoid long-term contracts with suppliers. Avoiding being locked in can be beneficial if market conditions change or if you find a better deal with a different supplier. It also eliminates the risk of having to pay a higher price for an extended period of time.
By using spot buying strategically for items that are not frequently used or have a shorter shelf life, you can eliminate the need to overstock on these items. This can save your organization money by reducing excess inventory and storage costs while helping you streamline your purchasing processes. By using technology and software to manage spot buys, you can save time and resources on manual processes. This can result in cost savings for your organization.
Finally, if you have a high volume of spot buy purchases, you may be able to negotiate volume discounts with suppliers. This can result in cost savings for your organization in the long run.
Getting Started with Strategic Spot Buying
Getting started with strategic spot buying can feel like stepping into a maze. But don’t worry, we have your back. Embrace flexibility—because sometimes the best deals pop up when you least expect them! With these tips in mind, you'll be ready to tackle spot buys like a pro while saving enough for that well-deserved coffee break (or two). Happy buying!
