Purchases account for 50 to 60% of revenue; every euro saved goes directly into net profit, and Widoo generated an average margin of 23% for its members last year. The potential is immense. One question remains: why are so few companies taking advantage of it? Read Part 1 →
So why does this treasure remain buried?
In short: three factors account for the inaction: lack of time, lack of expertise, and lack of leverage with suppliers.
If the potential is so obvious, why do so few companies take advantage of it? The answer lies in three words that every SME executive knows by heart.
What's holding you back?
- Lack of time. Negotiating every contract, comparing every supplier, tracking every renewal: a full-time job that no one in an SME has time for.
- A lack of control. Do you know the true cost of your energy, your insurance, and your fleet? Your provider, on the other hand, knows it inside and out. This information asymmetry works against you every time you sign a contract.
- Being underweight. When facing a supplier alone, an SME negotiates with the strength of an SME. Large corporations secure terms you can’t even imagine—not because they’re smarter, but because they’re bigger.
The result: we give up. We sign the agreement. We pay up. We move on to something “more strategic.” And the deposit remains untouched, year after year.
How many more crises will we have to endure?
In short: instability has become the norm, not the exception. The real question is no longer “When will things calm down?” but “What are we waiting for to stop putting up with this?”
Let’s face it. We’ve been dealing with one shock after another for years now: the health crisis, soaring energy prices, inflation, supply disruptions, and rising interest rates. And let’s be honest: there will be no return to normal. Instability is no longer the exception—it has become the norm.
So the real question is no longer “When will things calm down?” The real question is: What are we waiting for to stop putting up with this?
To Endure
- To accept every price increase without reacting
- Renewing Contracts by Implied Consent
- Negotiating on your own, without a point of comparison
- Discovering the budget shortfall after the fact
Plan Ahead
- Secure Your Terms in Advance
- Pooling Purchasing Power
- Leverage negotiation expertise and a benchmark
- Turning a Recurring Cost into a Real Competitive Advantage
The difference between the two isn't luck. It's decision-making. The good news is that, after these difficult years, the economic environment is once again becoming more favorable for companies that are willing to take action. Now is the time to take control rather than keep chasing after price increases.
A principle as old as commerce itself. Joining forces to have more influence is nothing new. Since the dawn of time, people have come together to achieve better results. The only thing that has changed is that we’ve ended up forgetting this—or coming to believe that it wasn’t “strategic enough” to warrant our attention.
When you've tried everything on the strategic front, try the non-strategic approach
In short: After exhausting all the “priority” levers, the next opportunity for savings is often found in the area we tend to overlook: purchasing.
You’ve streamlined your operations. Revamped your product offering. Strengthened your sales teams. Refined your marketing. You’ve pulled on all the “priority” levers for performance—again and again.
What if the next big win—the real one—isn't where everyone's looking? When you've tried everything with the strategic teams, it's time to try the non-strategic approach. That overlooked position, that unloved one, that blind spot: that's where the profit margins you're searching for everywhere else are hiding.
Purchasing isn't a chore. It's a goldmine—the last major source of performance that most companies have never truly tapped into.
How about we take a look together at what's hidden in your purchases?
Schedule an appointment →Frequently asked questions
What percentage of revenue do purchases account for?
On average, 50 to 60% of revenue, according to Cegos, and up to 70% in certain industrial sectors, according to McKinsey. Indirect purchases (excluding production) alone account for up to 20% of that total.
Why is saving money on purchases more profitable than selling more?
Because every euro saved on a purchase boosts your net margin at no additional cost. To generate the same euro in margin through sales, you have to sell much more. Saving 10% on indirect purchases can increase your gross margin by at least 50%.
What is a collaborative buying group?
It is a network of companies that pool their purchasing volumes to collectively secure terms and conditions typically reserved for large corporations. Widoo negotiates framework agreements on behalf of its more than 450 members in Luxembourg and Belgium.
How much money does Widoo save its members?
Last year, Widoo generated an average margin of 23% for its members, based on actual expenses and categories often considered to be already optimized. In our experience, our members get at least five times their membership fee’s worth each year.
Stop putting up with it. Let's shop smarter, together.
More than 450 companies in Luxembourg and Belgium have already decided to turn their procurement into a real driver of competitiveness—without wasting any time. So what are you waiting for?
Join Widoo— Better Together 🚀
Sources: Cegos, “Procurement: An Integral Part of Corporate Strategy”; McKinsey, cited by Buying Solutions; Spendesk, “Managing Indirect Procurement”; Stratégie Achats, “Optimizing Indirect Procurement”; Oxalys, “Indirect Purchasing vs. Direct Purchasing.” The 23% margin figure corresponds to the results measured by Widoo among its members over the past fiscal year.
