One of the most crucial relationships you’ll no doubt develop when operating your business are your relationships with third party suppliers or vendors. Here are some essential tips to manage your existing and future vendors.
If a vendor’s products are faring well in your store, that supplier wouldn’t want to lose your business. You can leverage that knowledge to negotiate discounts with that vendor. Just ensure that you come up with an arrangement that benefits the both of you.
Additionally, if you have a vendor that’s underperforming, perhaps it’s time to rethink your arrangement with them. Consider investing in ReverseLogix return to vendor software to see how well your supplier is delivering.
Your gross profit percentage is not the only measure of profitability. You should also take into account the vendor’s average shipping time, reliability, and the consistency of their product quality. Start by identifying what’s special or unique about their products. Can you get a similar, but better quality product from another vendor? Remember, don’t settle for less and demand quality always.
If you’re working with small vendors, doing business with them is probably costing you more than if you work with bigger vendors. If this is the case, see if you could get discounts to offset the cost of working with them.
Letting your vendors manage you, instead of the other way around, can be costly. They could tie up much-needed money in useless inventory, and consume your time just trying to work out any kinks they’ve created. By being proactive, informing them of your expectations, and making them liable, you’ll have more resources to focus making more money and making your customers happy.