I have a small-scale business selling home decor items to consumers. Can wholesale deals and discounts boost the purchasing power of my startup?
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Smaller businesses might make larger purchases by taking advantage of trade discounts and wholesale deals. The term "purchasing power" refers to a company's or person's ability to buy a certain volume of items for a given price. Trade discounts offered by suppliers and vendors help small firms save money that may be spent on acquiring more inputs and materials. Improvements to production facilities, new staff to increase output, and other investments to enhance business operations qualify as "extra purchases." When owners have extra cash on hand, they can invest it and earn interest.