If you are choosing to resell products or create a sales network, selecting the best supplier or distributor will help you win the market for your business within a reasonable time.
If you plan to resell goods, research reputable suppliers first to attract and retain customers, because quality is essential for building customer trust in your business.
If you want to start a new sales business and ensure that your products reach as many customers as possible, choose the best distributors. You can achieve this through direct contact with distributors or by using social media.
Whether you are seeking a service provider or a manufacturer that produces product components, custom packaging materials, or ready-for-sale merchandise, finding a responsible and professional organization that delivers exactly what you need, when you need it, can be a lengthy and challenging task.
Most experienced professionals insist that rushing this process almost always leads to future problems, which is why taking the time to be thorough and selective is highly recommended.
Keep these points in mind when following the steps below to find a reputable manufacturer, supplier, or distributor:
- Write down and clearly define exactly what you need, including all product components, materials, printing and packaging requirements, delivery requirements, and so on. Note that if your product and packaging conform to standard sizes, it may save you money.
- Determine the minimum production run required for the product or its components. For example, most manufacturers produce only large quantities, and this minimum varies from one producer to another. Therefore, it is possible to end up with 500 units of one component from a specialized supplier and 1,000 units of another component from a different supplier. Prepare for such discrepancies.
- Start searching for manufacturers and suppliers. The best recommendations often come from referrals, but if referrals are unavailable, check the following sources:
- Books and magazines listed in Chapter 5
- The www.yellowpages.com website
- The Encyclopedia of Associations (find an association related to your product or service, contact it, and ask for recommendations)
- Industry directories
- Trade journals
- Trade shows
- “Green” or environmentally friendly suppliers on websites such as:
- Contact reputable suppliers and start asking questions. If a supplier refuses to answer your questions, you are likely dealing with the wrong company. Important questions include:
- Are you licensed?
- Do your materials and work practices meet state and federal requirements?
- Are the materials fire-resistant, non-toxic, eco-friendly, and safe?
- Do you guarantee your work?
- Can you provide credit references?
- Can you produce a prototype or sample? If not, why?
- What is the minimum order quantity, and how much will it cost?
- What are your payment terms?
- Can you store my order during production, and is there a storage fee?
- Do you work with reliable shipping companies, and do they offer discounts?
- How can production costs be reduced?
- How long will manufacturing take?
- How long will shipping take?
- Will the order be insured?
- Manufacturers, suppliers, and distributors often use technical terms and industry-specific language unfamiliar to beginners. Do not be intimidated. Learn the terminology as you progress.
- Do not be influenced solely by friendly salespeople or the fact that a supplier or distributor is located nearby. Professionalism, reputation, and good service are far more important than convenience.
- If possible, visit prospective suppliers in person. Ask for a tour of their operations and learn how the company functions. You can gain valuable insights this way, and your interest will likely be appreciated.
- List the best companies in order of preference.
- Contact your preferred candidates and negotiate for lower prices, better delivery times, or improved terms and conditions. If you do not ask, you are unlikely to receive these benefits.
- Once an agreement has been reached, ensure that everything is documented in writing.
Final Thoughts
Whether you are a reseller or a wholesaler, increasing the supply and availability of your products depends on choosing the right supplier or distributor. If your business involves services or selling goods, selecting the right agent or broker can help your business grow and maximize profits.