Purchasing power is the amount of goods or services that can be purchased with a unit of currency. At IMS, when you sell your product or service to another IMS client, you will earn fair retail pricing, just as you would any other time. These earned dollars automatically increase your purchasing power by allowing you to purchase products and services at your wholesale costs, instead of at retail pricing.
Here’s how. Your cost to produce your product or service is different from the price you charge for that product or service. If your service is $1,000 to your buyer, your cost to produce that service is much lower. The difference between the two is your profit margin.
When you sell through IMS, you receive the equivalent of fair retail price for your product or service. When you buy through IMS, you are able to use your profit margin to increase your purchasing power, because your cash-outlay through IMS is significantly lower than if you bought that same product or service in a regular retail environment.
Let’s do the math on the above example of the $1,000 service. Let’s assume that this service had a part installed and labor to install that part.
Fair retail price = $1,000
Cost for parts and labor = $450
Profit = $550
In a normal scenario, you sell your service and you have $1,000 to spend. When you spend that $1,000, it costs you $1,000.
At IMS, you sell your service and you have $1,000 to spend. When you spend that $1,000, it only costs you $450!!! Why? Because instead of giving $1,000 cash to someone, you invested $450 in parts and labor but was still able to spend $1,000. This is how IMS helps you increase your purchasing power.
"As an HVAC contractor our inventory is our manpower. IMS allows us to utilize our manpower fully, even when the cash side of our business is slow."