List a shop's outgoings and the cost of goods is a bigger item than rent and wages together. Yet it is what we discuss least: we read the lease carefully, we work the wages out, and we simply accept the supplier's price.
And one per cent on the cost price brings more than the same per cent anywhere else — because it applies to the whole range, every month. What's more, the price isn't set by the price alone.
A cost price is made of six terms
| Term | What it means | What is it worth? |
|---|---|---|
| List price | The base everything else comes off | This is what they move on least |
| Volume band | Lower unit price for a bigger order | A lot — but only if it sells |
| Payment terms | How many days before you pay | It gives your money back its freedom |
| Delivery charge | Cost and frequency of delivery | On small orders it can eat the discount |
| Minimum order | Below which they won't deliver | This is what forces over-ordering |
| Right of return | Will they take back what didn't sell | With fresh goods this is the most valuable |
That table is the most important thing in this article. When a supplier says “that is the best price I can give you”, it is almost always true of the first row only. The other five have to be asked about separately — and together they are often worth more than the one or two per cent the whole conversation was about.
How to prepare for the conversation
You can't negotiate on impressions. Someone who says “I buy quite a lot from you” is in a weak position; someone who says “last year I bought this much from you, and these twenty lines were half of it” is in a strong one. The difference isn't the tone, it is the figure.
- 11. Work out your annual spend with themThis is the one argument that always works. Annual, not monthly: it is a far bigger number, and it shows exactly what size of customer you are.
- 22. Find the twenty lines that make up half of itWith almost every supplier a narrow set brings most of the volume. Take the negotiation to those, because there one per cent matters — not to the whole catalogue.
- 33. Look at what actually STAYS on youThe best-selling product often brings the smallest profit. Knowing that, you don't negotiate on the biggest unit count but where the margin is tightest.
- 44. Get a concrete quote from someone elseNot to use as a threat, but so that you know the market level. Without a quote you have no reference point, and then everyone believes they are getting a good price.
- 55. Ask for one thing, not fiveAnyone asking for a discount on everything gets nothing. Pick the single term worth most to your shop right now, and go for that.
If they can't move on the price
Most wholesalers have a fixed price structure they genuinely cannot step outside. That doesn't mean there is nothing to ask for — only that it isn't in the first row.
- Longer payment terms: the goods don't get cheaper, but your money stays with you for longer.
- Free or more frequent delivery: with fresh goods this directly means less waste.
- A lower minimum order: the most valuable request in a small shop, and the one made least often.
- Right of return on new lines: trying a new product then isn't your risk alone.
- Tastings, display material, shelf labels: not money, but they bring sales.
- A fixed price for a season: predictability, which keeps your own pricing stable too.
When is it worth switching?
Switching always costs more than it looks: a new ordering routine, different packaging, a different delivery day, and a few weeks until it settles. So don't switch at the first bad experience — but there are signs after which waiting isn't worth it.
| What you experience | What it means |
|---|---|
| Items are regularly missing from the order | Your shelf stays empty — that is lost turnover |
| Delivery slips and nobody tells you | You can't plan; with fresh goods that is waste |
| Short-dated goods arrive often | The risk is being pushed onto you |
| Prices change without notice | Your own pricing is permanently wrong |
| Faulty goods aren't taken back | The cost of the complaint stays with you |
| The same terms for years | You haven't asked — worth doing before switching |
The monthly fifteen minutes
- 1Look at the list by profit, not by unit count — the two are rarely the same.
- 2Find the two products that sell a lot and bring little. Those are the ones to raise with the supplier.
- 3Look at the month's waste in money and which products it came from. If one product is there every month, the order quantity is at fault, not the customer.
- 4Once a year get a quote from someone else too — not to switch, but so that you have a reference point.
- 5Write down what you asked for and what you got. That will be the starting point of the next conversation.
The cost price is a peculiar item because it is at once the largest and the least questioned. We spend weeks negotiating a lease, while many shops carry the same supplier terms unchanged for years — not because they are good, but because nobody ever asked.
Negotiating takes more than intent, though: you need to know what you buy from them, which narrow set makes up the volume, and what stays on you. With those three figures a fifteen-minute conversation can bring more than a whole month of adjusting prices.
Frequently asked questions
How do I ask my supplier for a better price?
With figures. Tell them what you bought from them over the past year, and which twenty lines made up half of it. Then ask for one single thing — the one worth most to your shop right now — rather than a discount on everything.
What should I ask for if they can't move on price?
Longer payment terms, a lower minimum order, more frequent delivery, or the right of return on new lines. These don't lower the price, but they free up the shop's money and cut waste — for many shops that is worth more than one or two per cent.
Is it worth ordering a bigger quantity for the lower unit price?
Only if the bigger quantity also sells within its shelf life. With fresh goods a volume discount often turns into waste: what you gained on the price you pay for in the bin. That decision needs your own sales data, not the supplier's suggestion.
How many suppliers should I work with?
As many as you can comfortably handle, but for any one range preferably not just one. With a single supplier, one missed delivery means an empty shelf straight away — and you have no negotiating position either.
When should I switch supplier?
If deliveries are regularly incomplete, if you keep getting short-dated goods, or if prices change without notice. A one-off mistake isn't a reason to switch — switching is a cost in itself. But before you do, it is always worth asking for one more conversation.
How can I try a new supplier without risk?
Don't replace everything: start with part of the range and keep the old one alongside. In two or three weeks it becomes clear whether they hold the delivery day, whether the order arrives complete, and what shelf life the goods come with.
How do I know whether I am getting a bad price?
Only by comparison. Once a year, get a quote from someone else on the same twenty lines. Without a reference point everyone believes they are getting a good price — that is what their supplier tells them too.
Should I negotiate on the best-selling product?
Not necessarily. Look at the list by profit as well: the best seller often runs on the thinnest margin. Negotiation brings most where turnover is high AND the profit is tight — the two together.
To negotiate, you have to know what stays on what.
Boltom App shows profit next to turnover product by product — so you can see exactly where the problem isn't your pricing but your buying.
- Profit per product, not just unit counts — the best seller often brings the least.
- Daily waste totalled in money: this is what an oversized minimum order produces.
- With several shops, a separate report per shop, with its own cost prices.
No card needed · 2 minutes
