Commodity prices are cyclical, in one year they are high and in the other they are low. This leads to the most basic rule of business, that you must buy when prices are low and sell when prices are high. However, this simple formula often becomes difficult during periods of fluctuating prices. So how do you counter this ?
The large firms often indulge in using money market instruments like derivatives and commodity price hedging. Some even have sufficient cash to make all the raw material purchases they need for several months in advance. They take physical possession of the raw material in a sense protecting themselves from price fluctuations in the future.
Unfortunately, both these avenues are not options medium and small businesses. So how can small and medium sized businesses have some protection against price increases.
Presenting SourceGoodFood's VIP Reward points.
For every INR 50 (fifty rupees) that you spend on sourcegoodfood.com's website we will credit 1 reward point into your VIP Reward Points account.
Each Reward point is worth INR Rs 1 when you spend it. When you order your products in future you can use reward points to lower your final invoiced value.
If you buy 100 kgs of a product say 'A' for INR 50000 (excluding taxes). We'll credit 50000/50 reward points to your VIP rewards account, i.e. 1000 reward points.
This with each such purchase you gain 1000 reward programs after 5 such purchases, you will have accumulated 5000 VIP Reward points in your account.
The next time you buy a product 'A' or any other product for INR 50000, you can use the 5000 VIP Reward points to get a discount, so you end up paying only 50000-5000 = INR 45000 (excluding taxes) saving INR 5000, i.e up to 10% on that invoice.
How do I save using VIP Reward Points
The ideal way is to make purchases when prices are low without the points and accumulate points and as prices climb you can avail between 2500 to 5000 points to offset price increase per invoice. For customers who have accumulated over 100,000 points can move to the silver tier and avail discounts of up to INR 10000 using the reward points. Our gold tier customers can avail discounts of up to INR 50,000 reward points.
Clear Read the FAQs to know more about how reward points will reward your business or contact us via whatsapp if you have any further questions