Five components the price list does not show
- Waste. One ruined mix on 50 kg of flour eats the price difference across a dozen bags.
- Oven downtime. An hour of idle oven costs more than a 3% discount on the batch.
- Delivery. Self-collection means a vehicle, a driver, time and risk. It often looks cheaper only on paper.
- Deferral. Thirty days of deferral is free working capital. Compare it with the cost of a loan.
- Storage. Buying ahead «on a deal» turns into warehouse space, rent and a humidity risk.
How to count honestly
Take not the price of a bag but the cost per kilogram of finished product over a month: all the flour bought, minus write-offs, divided by output. Compare two suppliers on that number — the picture usually changes.
Where the real savings are
Not in the grade but in predictability: a fixed specification reduces waste, a delivery schedule reduces safety stock, deferral reduces the need for working capital. All of that converts into money faster than haggling for 2% off the list.