Unlock Cost Stability: How Beacon Keeps Your Overheads in Check
In today's article, we will be exploring how Beacon Purchasing is the perfect strategic partner to help you stabilise your overheads. As a leading procurement services provider, Beacon is committed to safeguarding your business interests and optimising your cost management. Read on to discover how our expertise can benefit your business and help you achieve cost stability in a dynamic marketplace.
The hospitality and catering industry is facing a tough challenge right now. The CGA Prestige Foodservice Price Index, out last week, shows that foodservice price inflation in February 2023 was 20.6%. This is slightly down from December 2022 figure, which was 22.9%. However, these marginal reductions aren’t enough to soften the blow of the £7.3 billion per annum rising energy costs the sector is seeing following the reduction in government support.
Inflationary pressures are never easy to deal with, especially in a sector where margins can already be tight. So, it’s good to know that you can rely on Beacon to carry out due diligence to ensure that any supplier requested price increases are fair and reasonable. We understand the importance of maintaining a healthy bottom line, and our professional approach ensures peace of mind for all our clients.
When a supplier raises their prices, it is essential to figure out the driving factors behind the increase. At Beacon, we take pride in our ability to analyse the supplier's cost structure thoroughly. Doing so, we can verify the evidence provided in support of the price move and ensure it's a true reflection of the current market.
For example, the cost of raw materials, labour or transportation may have all gone up, meaning that the supplier can no longer absorb these increases.
Fortunately, our team can work alongside the supplier to identify the best ways to mitigate or delay price moves while also negotiating a fair and reasonable percentage increase. Our extensive knowledge of the marketplace can help you preserve your business's bottom line and strengthen your relationships with key suppliers.
However, this is only one part of our added value service. We also strive to identify more cost-effective ways of purchasing, looking for product swaps or even support with menu reengineering to ensure you can protect your margins. We understand that inflation can impact various industries and markets in different ways, and some suppliers may be better equipped to handle price hikes than others. Nevertheless, we pride ourselves on leveraging our vast network and expertise to ensure that any price adjustments remain reasonable and still deliver excellent value for our customers.
Rest assured that with Beacon, you can trust in our commitment to delivering the best possible outcomes for your business.