Can a retail business compete on acquiring quantity discounts from suppliers? -

Not talking about WalMart here. Planning to open a small business. However, my suppliers would be even smaller.How much money (%) can you save by buying in bulk from your suppliers. Keep in mind that the suppliers are small also.

Every supplier has to negotiate/decide on his own bulk order discount rate, based on his own cost structures. Not every supplier can achieve much savings in producing more. You also need to remember that there are cost involved in taking receipt of more material. Also, since YOUR business is to be small you may not even qualilfy for a large-order discount, simply because you won t buy all that much. A typical large-oder discount is not likely to go higher than about 10% anyway.