Consistent Costs
When you choose an single source for all your franchise needs You can ensure that you ensure that costs are consistent across different the locations. This allows you to keep your pricing in line. If your customers are offered the choice of multiple locations offering different prices They’re much more likely to pick the cheapest alternative, which could be negative for sales at the higher priced location. One provider means that the food or services are the same or nearly the same in each location, which is an essential aspect of running a company that has several locations.
Consistent Quality
Additionally, utilizing various suppliers could result in inconsistent quality among the stores. If a restaurant has two locations within the metropolitan area, with one located downtown, and the other being located in suburbs. If the suburban restaurant is using premium French fries that are Kosher salt, while the downtown restaurant is using the less expensive brand that has sea salt, downtown sales will fall once word goes all.
Ability to Share Supplies and Equipment Between Locations
Utilizing the same vendor it is much easier to trade products between locations. In keeping with our previous instance, if your restaurant runs out of fries in one restaurant, you can order exactly the same type of fries from your other eateries instead of having to purchase a lesser flavor from a wholesaler, or having to increase the price (or take the expense) by buying the more expensive version from a store.
More Convenient Invoicing and Accounts Payable
To gain a benefit that the client will not notice the benefit, having the same supplier for each location allows for faster billing and management invoicing of the accounts payable. Instead of paying five different suppliers for five stores on different dates during the course of a month, you could just pay one company as per your usual timetable. In addition, they will often give you a reward for loyality.
Bulk Discount Pricing
One of the most popular benefits you can expect to get is a bulk discount. If you purchase a lot of goods from one supplier it is more likely to receive a significant discount. If you have adequate storage space and locations, you might be able of ordering specific items on pallets that could result in significant savings in the end term. In the world of business every discount can be an excellent deal, so it doesn’t require you to invest more in storage.
With a single supplier that has multiple locations, businesses can guarantee consistent quality and prices for their customers. While benefiting themselves with discounts and more efficient invoicing. While using several suppliers to benefit from discounts might be an excellent idea, it’s not beneficial long-term, when compared to a single supplier.