Having reliable suppliers for your reselling business ensures timely delivery of products and more affordable purchasing costs compared to competitors.
If you have a reliable distributor for your products or an agent for your services, your profits are likely to increase as your customer network continues to grow.
Once honest and dependable suppliers or distributors have been identified, make every effort to build and maintain strong relationships with them. The last thing a new business owner needs is to restart the search process all over again. In fact, a good relationship with a knowledgeable supplier can help a small business stay updated on the latest trends, services, and ideas.
With that in mind, here are a few suggestions for creating and maintaining long-lasting relationships with suppliers, manufacturers, and distributors:
- Pay on time. Prompt payments build goodwill and may lead to improved credit terms, which can be valuable in the future.
- Ask for advice, suggestions, and opinions. Experienced manufacturers, suppliers, and distributors often have valuable insights and are usually willing to share them. Use this knowledge to your advantage.
- Be flexible with deadlines and avoid making unreasonable demands.
- Show loyalty to reliable business partners.
- If problems arise with an order, report them immediately in a calm and professional manner. Do not ignore small issues, as minor problems can grow into major conflicts over time.
- In short, entrepreneurs should treat suppliers and distributors the same way they expect customers to treat them.
Factors to Consider When Selecting an Overseas Supplier or Manufacturer
To reduce costs, many businesses buy directly from foreign companies to take advantage of lower labor costs or cheaper raw materials. Once a potential company has been identified using the same “Beginning the Search” guidelines mentioned earlier, contact your national embassy or consulate in the country where the company is located. Staff members in these offices may have important information about the businesses you plan to work with.
Key concerns that should be addressed include:
- Quality standards and warranties. Are they different from what you expect or what is legally accepted in your country?
- The use of substandard materials by the manufacturer. What costs will you incur if defective products or materials must be returned to the foreign supplier?
- Transportation and logistics costs.
- Communication expenses, including mail, telephone calls, and personal visits.
- Currency fluctuations and payment requirements.
- Inventory costs while products are in transit.
Final Thoughts
For a reselling business to survive and grow, choosing the right supplier is essential. If your supplier is domestic, avoid relying on only one source forever. Expand your business by also working with foreign suppliers or manufacturers when appropriate.
When choosing a distributor, ensure that your pricing remains affordable so customers continue purchasing your products and services consistently.