Unlocking the Power of Cash and Carry for Retailers: What You Need to Know and Why You'll Absolutely Love It
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by Fiza Khan
Cash and carry is a powerful tool for retailers, offering a range of benefits, from improved inventory management and cost savings to increased sales. For those who are unfamiliar with the concept, cash and carry allows retailers to purchase goods from a wholesaler or manufacturer, often at discounted prices, and take them away to their store for immediate sale. This eliminates the need to store the goods in their own warehouse and reduces the risk of stock not selling.
Cash and carry can also help improve inventory management, as retailers are able to buy goods as and when they are needed, ensuring that they don’t end up with excess stock. With greater control over their stock, retailers can also benefit from improved margins and cost savings. Moreover, cash and carry also offers retailers a chance to boost sales, as it gives them access to a greater range of products and competitive prices. So if you’re a retailer, unlocking the power of cash and carry could be a game-changer for your business. Read on to learn more about how cash and carry can benefit your store.
What is cash and carry?
Cash and carry is an inventory model in which retailers purchase goods from a wholesaler or manufacturer, take them away to sell in their store and pay for them on a cash-on-delivery (COD) basis. In other words, retailers are required to pay for their order in full at the point of delivery. The key advantage of cash and carry is that retailers don’t have to pay for their goods upfront as they would with a normal contract or FOB (free on board) order. This means that retailers are not required to commit to a large upfront payment, which can often be problematic for smaller businesses with limited funds.
Cash and carry inventory management enables retailers to buy goods as and when they are needed, ensuring that they don’t end up with excess stock. This can help retailers to improve margins and reduce costs associated with product inventories. It can also help retailers to optimize inventory and improve customer service, as they will have more flexibility around stock levels.
Benefits of cash and carry
Cash and carry has a number of benefits for retailers, including improved inventory management, cost savings and increased sales. Let’s take a closer look at each of these.
Improved inventory management - Retailers can buy goods as and when they are needed using cash and carry, rather than committing to a large upfront payment. This enables them to better manage their inventory, as they don’t have to store additional stock that may not sell. Moreover, cash and carry also gives retailers greater control over the quantity of goods they purchase. As a result, they will be less likely to buy too much, which can often result in wasted money.
Cost savings - By paying for goods on a COD basis, cash and carry allows retailers to benefit from discounted prices. This means that they can purchase goods at a lower cost than they would with a normal FOB or contract order. Due to the reduced upfront payment, cash and carry can also help retailers to secure financing. This can be useful for growing companies that don’t yet have the funds to pay for larger orders.
Cash and Carry Product Range - One of the biggest advantages of cash and carry is that retailers have a wider range of products to choose from. This is because wholesalers and manufacturers often have a broader range of products available on a COD basis. Moreover, cash and carry also gives retailers a chance to diversify their product range, as they have more products to choose from. This can help to increase sales and encourage customers to buy more from your store.
Increased sales - By accessing a wider range of products and competitive prices, cash and carry gives retailers a chance to boost sales. This is because they can purchase products from wholesalers at a lower cost and sell them at a lower price, offering customers a cheaper product. It can also encourage customers to buy more, as they will be able to access a broader range of items.
“Cash and carry is a great way for boutique owners to make money while they're out and about. You can buy new items and sell them right away, taking advantage of the "market momentum" we know customers appreciate.”
Global Retail Business Manager
Cash and carry strategies
Cash and carry is a straightforward concept, but there are a few ways you can make the most of it. To begin with, you need to find the right wholesalers that offer cash and carry. They are often different from the wholesalers you currently use, and they can be identified through a quick Google search.
After finding the right wholesalers, you need to select the products you want to sell and find the right prices for them. Once you’ve found the right products, you can negotiate with your wholesalers and ask whether they offer cash and carry. If so, you can then decide on the minimum amount you want to spend.
Next, you need to decide how you want to transport the goods from the wholesaler to your store. You can either hire a truck, or, if your store is close to the wholesaler, you can transport the goods by car.
Also, you need to decide where you want the goods delivered. You can have them delivered straight to your store, or you can have them delivered to your warehouse and then transport them to the store yourself.
Tips for making the most of cash and carry
Ensure you have a solid cash and carry plan in place- You need to know exactly how you will buy and sell goods, and where you will get them from. This will help you to avoid any confusion or miscommunication with your wholesalers. -
Negotiate with your wholesalers- If you’re using cash and carry, you should be able to negotiate better prices with your wholesalers.
Bring a spacious car- Make sure that your car has enough space to accommodate larger products, and be aware of the locations of loading docks to collect any big purchases.
Bring extra cash- When shopping through cash and carry, make sure you have some additional money on hand in case a certain merchant does not take credit cards.
Use Apps - Many markets have applications that can be installed to assist customers in finding their way around the building. This is a great way to organize the Cash and Carry stops.
Cash and Carry at OFFPRICE Show
If you’re attending the OFFPRICE Show, which takes place in Las Vegas in February 2023, you’ll get to experience first-hand just how powerful cash and carry can be. The show is host to thousands of leading manufacturers, including many who offer cash and carry. At the show, you’ll be able to negotiate the best prices and discover a range of new products. Moreover, you can also find out more about how you can maximize cash and carry for your store. To find out more and to register to attend, click here