Office Supplies

How to Maximize Savings on Office Supplies


Office Supplies are small and large-scale equipment and materials commonly used in offices, companies and other organizations, principally by people engaged in document keeping, transcription, bookkeeping or administrative work, office cleaning and janitorial, and for proper storage of important supplies. Office Supplies includes writing pads, desktop or laptop computers, printers, fax machines, copiers, multifunction printers, desktop computer systems, desktop data management systems, desktop or laptop computers, printers, faxes, copy machines, software applications, desktop change management software, desktop organizers, desktop computer software, audio and video software, desktop security devices, desktop organizers, mobile phone systems, personal digital assistants, desktop PC backup or storage media, fax services, network server programs, networked computers, PC networks, voice and video cabling, computer hardware, data management software, desktop communication software, desktop software, and other devices that can be used to access the Internet. There is an endless array of such office products that are available in the market today. Many products are categorized under wholesale, direct selling, and private labeling.

Current asset calculations show that there is a huge difference in expenses incurred on wholesale and current goods at six percent to seven percent margin. Based on this percentage, it is estimated that a six percent increase in the wholesale price of office supplies will translate into an eight percent increase in the current assets. Thus, it can be easily concluded that over a period of time, an increase in the wholesale price of office supplies results in an increase in the current asset account. On the other hand, decreasing the supply of items will reduce the current asset account by a corresponding amount. This will result in an increase in the price of the end product, lessening the profitability gained from the marketing of the products.

Office cleaning supplies are the most common form of retail business over the last few years. As the name suggests, these supplies consist of certain products used for cleaning and maintaining the office environment. The products sold in the form of office supplies include paper towels, polishes, cleaning agents, mops, brooms, vacuum cleaners, toilet paper, garbage bags, floor mats, and more. These products are sold in large quantities during particular times of the year to meet the demand of the customers. As such, there is a significant shift in the buying behavior as reflected in the rise of over-the-counter sales of office supplies.

A direct relationship is established between the price of the pen and the number of marks it leaves on the paper. As such, when an increase in the number of users leads to a corresponding increase in the paper cost, the profit margin is diluted. This is why office supplies are classified into two categories-those that are sold in bulk and those that are sold in small quantities. While the price of the bulk items remains constant, the profit margin is variable depending on the number of items sold per each individual transaction. This pricing principle is applied throughout the supply chain until the end user.

In comparison to paper clips and post-it notes, office supplies are more elastic in the pricing spectrum. The prices of office supplies tend to be affected by demand, production, taxes, and other such factors. This is why many organizations resort to on-demand sales of their office supplies. For instance, many hotels maintain a strict order of post-its to ensure prompt service at competitive rates.

On the one hand, the consumer is able to deduct office supplies from his personal income tax. On the other hand, while the government sets aside a portion of the tax liability as an incentive to encourage individuals to conserve natural resources, the portion allocated to cover personal use is subject to tax depreciation. Thus, the consumer is able to maximize his savings through the use of these items and they also contribute to the overall reduction of expenses.

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