Dealing With New Suppliers

chinaloong

When you are starting out with a new supplier, getting the best bargain for each unit cost (cost of each item) is crucial. Many suppliers who sell exclusively to retailers do not publicly list their item prices on an easily-accessible website. In fact, many of them do not have websites and only have their company name and pictures of their products on web directories. They rely on people who find their products interesting to approach them directly to ask for quotes.
The reason they do not list prices for their products publicly is simple - so they can quote each person individually and markup their prices for retailers who seem 'green' and do not know how to bargain. There are people who are so trusting or inexperienced with dealing with suppliers (when they are starting out), that they think suppliers quote a standard rate when they ask for quotes. These people may very well agree to a supplier's initial quote (usually a marked up rate), thinking they are getting the same deal as everyone else.
When you are buying products by the dozens or hundreds, even a dollar difference in unit cost can impact how much profit you make. For example, if you decide to sell 200 items, the extra profit you could make could be $200 if the supplier quoted you a dollar less for each unit.

tovi123

Great advice!

Do your due diligence and shortlist a few suppliers to compare prices, services etc. DO NOT rely on solely 1 supplier as you'll be at their mercy when things go wrong eg stock arrival deadlines not met.

Bargain hard as if your life depends on it. Be prepared to walk away if the supplier wouldn't budge.

Of cos, you have to play your part in building a good business relationship with them and PAY ON TIME.

angelzfir3

There are risk involved when dealing with foreign suppliers. For starters, it would be good to get your products from local companies.