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A Case for the local manufacturer

Do you know that you can save costs by buying local?

It’s a well-known fact that profit comes from either one of two places - increased revenues or decreased expenses. Successful companies always look to increase margins by containing costs. But where else can you look to improve margins and profits?

What if you could reduce the impact on your costs from a fluctuating exchange rate? What if you could reduce the cash flow required to pay upfront to import products from overseas? What if you could purchase only the quantities you need when you need them, saving money you have tied up in stock and the space needed to store it? What if you could be sure of the quality of the product you were purchasing reducing the cost of after sales service?

Purchasing locally manufactured products from our non-ferrous foundry is the answer to these questions and improving your company profits.

• Eliminating the cost of exchange rate fluctuations

Rapid fluctuations in exchange rates negatively impact on profits. The increasingly uncertain global financial markets places your profits at risk if your costs are dependent on exchange rate.

• Reduce the cost of rejects and product failures

A poor quality imported product will cost you money to replace, but will cost you more money if you measure all the time it takes your staff to handle product replacements and the cost of a lost customer. Buying a quality local product gives you peace of mind and improved bottom line. Buying cheap is ultimately expensive.

"How many stories are told of importers paying for shipments of sub-standard goods which are unsellable!!"

• Cash flow is a cost

One of the largest expenses of importing products is the cash outlay required. Imports tie up large amounts of cash in that you have to pay upfront for the goods, you have to purchase large amounts at one time and you have to carry more stock due to long lead times to get replacement stock from overseas. Buying local means you can obtain credit terms and pay for the goods after you’ve sold them. You can buy in smaller quantities and hold less stock as you can quickly replenish stock when you need it. Profits appear on paper but you feel cash flow in your pocket. Buying local will put more cash in your pocket.

• Support local industry

Supporting local manufacturers and supporting Government's initiative to reduce unemployment is the right thing to do.

• Invest in your future profits

Your long term profits are dependent on a growing South African economy, buying local puts more people in jobs which will ensure that there are more people to buy your product and make you money.

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