Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses
How Franchisees Use Vendor Tiering to Cut Supply Costs
In this episode of Franchise Conversations with Fexingo, Lucas and Luna explore how top franchisees are using vendor tiering to reduce supply costs by up to 15 percent. They break down the strategy using the example of a multi-unit sandwich franchise operator who consolidated his purchases across three tiers—core, secondary, and spot vendors—to negotiate better pricing and terms. Lucas explains the math behind tiering, including how to calculate switching costs and leverage volume without a group purchasing organization. Luna asks about the risks of over-consolidation and how to handle…
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