Yesterday I received an email from a Source Report member asking for my help. It was marked ‘urgent’ so the author was quite obviously in a bit of a panic and the email pertained to sourcing a particular product.
This wasn’t a new product though; this was a product that he had been selling successfully for some time.
So why the urgent help required with sourcing the product?
Well, because unfortunately the original supplier had run out of stock and was unable to fulfil any more orders. On further investigation I discovered that the stock that had been sourced previously and had been selling so successfully that it had suddenly had literally disappeared overnight.
It’s so very important to have a ‘Plan B’ in business. Especially if you are relying on buying specific wholesale stock, from specific suppliers.
If this had been my subscriber’s only product (it wasn’t), his business could have been stopped completely dead in its tracks. Worst case scenario: his whole business could have been ruined.
So, to avoid this scenario happening to you, I want to give you some useful tips on how to deal with wholesale suppliers for your online business.
1. Don’t rely on one single supplier
There is no greater feeling than finding the perfect wholesale source for your chosen product. That lovely feeling of achievement when you’ve done your research, you’ve got a good deal on price and you know you can order in small quantities so a sample lot won’t break the bank – perfect!
You place your order, pay for your goods and in a few days your parcel arrives at your door. You list your items online and as you expected (because you’ve done your research) they sell well.
You know you have a hot product on your hands that will sell over and over and you know you have a supplier who will provide you with the item for as long as you are selling it and re-ordering.
But have you?
What happens if you go to order a second lot of this great product and your supplier has gone into liquidation? What if your supplier has closed down due to sudden illness or retirement? What if your supplier has simply decided not to stock the product anymore? What if the product has been discontinued by the manufacturer?
Imagine those disappointed customers. Imagine the money you could be earning but wouldn’t be due to lack of one very important thing – the product.
This could be an absolute disaster for you and your business which is why you should always consider purchasing stock (even the exact items) from more than one supplier. If you remain blinkered, then you have absolutely no ‘Plan B’ if things go wrong.
It’s important to try and operate in more than one niche and with more than one product within that niche too so that if one product or niche goes a little cold for a while, you have other successful niches or products to fall back on. This way you will always be making money.
If you rely on just one supplier for all your products you leave yourself wide open to the risk of losing everything if things go wrong with that supplier. Always remember this when sourcing your products and choosing your suppliers.
2. Learn how to deal with wholesale suppliers
I often get asked how to deal with wholesale suppliers when it comes to quantities, pricing, shipping and such-like and let’s face it, everybody at some time or another has heard those horror stories regarding wholesale suppliers that never actually supplied the goods, or only provided items of an appalling quality.
Knowing how to deal with wholesale suppliers for your business will help to make your business great. No matter what your experience in dealing with suppliers, it is essential that you learn how to deal with them properly and professionally to ensure your business grows and profits.
3. Finding a supplier
Some of the best deals will come from overseas, particularly from countries like China where goods can be produced very cheaply. I know this might be a little scary to start with, so if you have limited experience in dealing with wholesalers, it makes more sense to start locally, with a company that you know you can easily contact and meet face to face if required.
Local wholesale suppliers can be found online including within some reputable wholesale directories, but please be aware that some directories do cost money to join and not all directories are any good so choose carefully. Once you have a shortlist of potential wholesalers, you can head over to Google and search for reviews from buyers that have used the supplier in the past to ensure you are dealing with a genuine company that suits your needs.
4. Getting great service
When dealing with a supplier it is really important to establish at the outset that you are a serious buyer. If you can, use the telephone rather than email to make contact after your initial enquiry, and don’t be afraid to ask questions or confirm specifics such as the delivery date of your items. Constant communication builds rapport and will help your wholesale supplier realise that you are professional.
Reputable wholesale suppliers will offer you the option of purchasing a small selection of stock samples before placing a larger order. Take advantage of this – you should always get samples of the product first – and if it isn’t advertised then be brave and ask for it. You might have to pay a little more for the goods, but a small sample will help you to be sure that you are buying a quality product.
5. Negotiating for the best price
Once you have settled on a supplier and chosen a product, it is time to agree on a price. Never underestimate your negotiating ability!
The price a wholesaler offers you isn’t necessarily their final offer, so be ready to fight for the best deal available.
To knock down the price still further you can offer to buy in larger quantities (if you’ve tested the product previously and know you can sell the stock), as bulk deals certainly provide the best rates, or play off one supplier against another. But never buy more than you are confident that you can sell.
It’s often easier to negotiate with a supplier face to face, hence the advantage of a local provider, particularly as you get used to understanding how wholesalers work, so don’t be afraid to ask for a lower price rather than accepting the original price shown.
Wholesalers want your business and are often prepared to reduce their prices but as you would expect, if you don’t ask, don’t expect them to offer. Don’t forget that suppliers will be used to it and will expect you to drive them down. They will not think any less of you for doing so.
There is always a deal to be done. Make sure it’s you who gets that deal!