3 Symptoms of Kickbacks

Imagine you own a business, and your buyer is receiving kickbacks. What are some possible red flags that would indicate these shady dealings?

When it comes to kickbacks, here are 3 types of symptoms to look out for:

𝗔𝗻𝗮𝗹𝘆𝘁𝗶𝗰𝗮𝗹 𝗦𝘆𝗺𝗽𝘁𝗼𝗺𝘀
- The cost of goods sold increases, but your gross margin decreases
- Sales to a specific vendor increase while sales to other vendors decrease
- Your inventory levels are increasing or your buyer seems to be ordering more than usual
- You see an increase in warranty expenses or returns (and wonder why the buyer keeps purchasing inferior goods)

𝗕𝗲𝗵𝗮𝘃𝗶𝗼𝗿𝗮𝗹 𝗦𝘆𝗺𝗽𝘁𝗼𝗺𝘀
- Your buyer seems uncomfortable dealing with other vendors and/or buyers
- Your buyer is defensive of and partial to a particular vendor
- The vendor only wants to deal with your buyer

𝗟𝗶𝗳𝗲𝘀𝘁𝘆𝗹𝗲 𝗦𝘆𝗺𝗽𝘁𝗼𝗺𝘀
- Your buyer lives above his paycheck

If any of these symptoms sound too familiar, let us assist you in uncovering the truth and bringing you peace of mind. Message us today!