How best to source suppliers for a small business
November 11, 2022 1:08 pm Leave your thoughts
As a small business owner, making ends meet may often be tough. Overhead expenses can be almost astronomical, especially the cost of your supplies. Irrespective of being a re-seller or service provider, you need to ensure that whatever stock you buy is worth the price. Whether your business is still in its infancy or has been going strong for decades, finding the right distributors can be a struggle.
There are multiple elements you need to take into account when choosing a manufacturer to make sure you get good quality stock, on-time and at affordable prices. We'll explore some sourcing strategies here:
Read their reviews
If you've found a seemingly reliable supplier through an internet search, it's essential to do your due diligence. Check out what other small business owners have had to say about them. If you know anyone who's used their services, be sure to chat with them and see what their experience was like. It's also a good idea to do some research into the people or companies who are leaving the reviews to make sure they're real.
Don't initially buy in bulk
The last thing you want to do is order a large number of goods, only for them to be defective or subpar. To avoid this, you'll want to test out only a couple of their products to see if they're suitable and meet your requirements. However, remember that some suppliers have minimum order requirements, so you might have to buy more stock than you'd like, unless you come to an explicit agreement. Also, bear in mind that sometimes these purchases can be a write-off if the merchandise isn't up to scratch, so don't expect a return on investment when you first buy from a supplier.
Purchase some stock ahead of time
Don't put all your eggs in one proverbial basket. Along with assessing product quality, ordering some stock ahead of the intended time of use is beneficial because it gives you an opportunity to see the manufacturer's turnaround and delivery periods. This way, you'll be able to tell if they're punctual and reliable because timely transport is vital for business success.
Ask about refund or exchange policies
No matter how good a supplier generally is, everyone slips up from time to time. It's inevitable that one batch will be faulty or flawed at some point or another. Prepare for these instances by discussing the distributor's policies regarding returning or exchanging malfunctioning or inadequate stock. The company's approach to this matter is also indicative of their integrity and dedication to excellence.
If you're a small business owner who requires some advice regarding any legal aspects of sourcing materials, reach out to the Law Offices of Donald W. Hudspeth, P.C.
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