The profit isn’t made when you sell a product. It’s made when you buy it.
Experienced marketers know that they lock in a healthy profit on a product when they buy it at a good price.
The price you can sell at is largely dictated by prevailing market conditions. Your customer doesn’t care one bit what you had to pay to acquire a product for your inventory. She only knows what your price to her is compared to what your competitor’s price is.
If you paid too much, your profit margin shrinks. It may even disappear.
The moral of this story is: choose your suppliers carefully. Do your best to make certain you don’t overpay for anything. Pay too much and your mistake comes out of your profit.
Always look for a better deal when you buy. Don’t let your regular suppliers get complacent. Go to trade shows. Go online. Read the trade magazines. Talk to sales reps. See if you can buy direct from the manufacturer.
As I learned at my father’s knee, “Buy low. Sell high.”