If you need to have construction supplies for your business, should you buy them per job that you need to complete or in bulk? There are pros and cons to each, and the costs can always be forwarded to the customer in the end, so does it really matter if you buy construction supplies in bulk or if you buy them on a per-use basis?
Here are some things to consider if you want to try buying construction or building supplies in bulk. Compare these things to buying on a per-build basis to see which option is best for you. In some cases, both options are completely reasonable for your company.
Money
To buy construction supplies in bulk, there's money involved. You'll want to make sure you can afford to spend a lot of money in advance on several building supplies, and then not have to wait for a new job to get the money back. If you rely on client deposits to buy the construction supplies you need, then buying in bulk is not going to work well for you.
Storage
Do you have a place to store lots of excess inventory? If you do, great! Buy bulk construction supplies as often as you need to keep your inventory stocked up as you use it. There's a benefit to buying in bulk since it allows you to get a greater price on the items you do buy and helps lower the impact of future inflation. This is a cost benefit you can forward to your clients with lower and more competitive bids.
Use
It's only worth investing in bulk building supplies if you can use them within a reasonable time to recoup your investment or even make a profit. If you're just going to have bulk supplies sitting in storage for months or years, the investment may not be valuable to you. The exception is if you can sell the excess supplies to another construction company or otherwise liquidate unnecessary inventory.
It's best to buy building supplies on a per-use basis until you have a general idea of what supplies you should buy in bulk and in what amounts due to consistent use. Of course, nails, screws, and similar construction supplies can be purchased in bulk because they are a constant material used in your field. Anything else can be purchased in bulk if there are no barriers and you feel it would benefit your business to do so.
For more information about buying construction supplies, contact a local company.
