Three “C”s and an “E”: Cars, Caskets, Chemicals and Everything else – sort of a Chinese menu of purchasing.

  First, Cars. You know where you’ll buy this “C”, where the salesman gives you the best deal. Then Caskets, you also know where you get the best discount or rebate. And your last “C” – Chemicals, that’s the easiest choice because your embalmer makes it for you. What makes him happy works for you, right?

  Then comes the “E” – everything else. This is what takes the most time and can cost you a lot of money. While you don’t spend the most money (or not often) in this category, it can add up and be a significant line item over the year. It’s also an area where you may feel the most freedom to source suppliers, and maybe even experiment. Let’s take a look at some usual buying scenarios:

  Buying from a friend. It’s a habit, it’s easy, and you like the visits. This seems like a slam dunk, but sometimes you need to check out his/her pricing. It’s easy for your friend too but so he/she may not know prices either. While never intending to charge you a premium, it may be that it’s become a habit for both of you. Neither of you are focusing on business, more on the visit and the friendship. If you’re not engaged in the buying process, and examining the choices out there, you could be doing yourself and your business a disservice.

  Responding to a special sale. Good idea as long as you recognize the name of who is behind the sale. But, you need to be sure the supplier is trustworthy, ships on time, and doesn’t offer a “loss leader” to get you interested and then practice the old bait and switch trick. Remember, you get what you pay for.

  Practice a hands-on approach. What I mean is “It’s your money.” Make sure you are making the best decisions. That “E” takes up a lot of time if you are constantly questioning, “Is this the best I can do?” One way to provide some assistance is to have a resource directory for suppliers. Every supplier has literature – so start a file. Bring the literature home that you pick up at conventions or meetings; don’t leave it in your hotel room. I talked about resource directories in January suggesting you start one to help you in customizing funerals. It works for purchasing too. In addition to providing you information, a file can be essential for your employees. We know you can’t do everything. You have to delegate sometimes, but do it responsibly. If you’ve created a culture where employees are accountable for the way they spend your money, then you’ve established a firm where your success is shared by those who work for you. When you give them the resources to make informed decisions and when you remain engaged in the purchasing process, everyone benefits.

  Maybe you’re shaking your head right now, “Hey, that’s a lot of work.” But by taking the time to make a list of your regular purchases in the fuzzy “E” area, you take the first step in getting a handle on where your money goes – and that’s exactly when you create a path for greater success. Remember, you can advertise and work hard to increase your business, BUT if you learn how to buy product more economically, that decision costs you nothing AND the savings go straight to the bottom line!