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Strategies For Success With A Wholesale Supplier

08th June 2011
By markwaugh28 in Business Law
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It is a misconception that a good wholesale supplier can significantly influence the future of your business. This does not undermine the need of a good wholesaler. On the other hand, this reduces the “I am not responsible” for what happens tendency. Most small businessmen do not learn from their mistakes because they do not think it is their mistake at all. They are ready to conveniently pass the blame on to someone else.

Your wholesaler or dropshipper is an integral part of your business, but you have control over the way they deal with you. If you don’t, then there is something wrong with the deal you structured in the first place.
It is a common perception that when small retailers are on the table to negotiate a contract with a supplier that they are only listening. Many attribute this to their small size or unfavourable cost structure.

However, they fail to understand that these things were not created by God almighty, but rather by us. Here are some strategies that will prove that solutions can be forthcoming despite all the odds that may be stacked against you.

Collective Buying:
If you are like the average retailer, you will know that most wholesale suppliers have a scale of operations that far exceed your own. You are just a tertiary source of revenue for them.

They give you less attention because you are not important. But, there are many just like you and if you network with them at associations and forums, you could collaborate and place a sizeable order with the wholesaler that would demand both his attention and customer service.

The tables will turn and they will need you more than you need them.

Look for a Niche:
Another such strategy is to avoid going to suppliers of name brand products. They can sell their stuff with remarkable ease, as there is burgeoning customer demand. In addition, the competition is too high. Rather find yourself a niche where you can compete better than anyone else does.

Lowering Your Period Costs:
Do not complain if your wholesaler does not ship your products on time if you give them a monthly fee.

Remember, they get paid every time the month ends instead of whether or not they provide service to you. Such costs are called period costs and should be avoided. All your costs should be product related, that is payable only when service is provided. This will give incentive to the wholesale supplier to be more responsive to your needs.

Plan for Exit at Any Moment:
When you deal with UK wholesalers, understand that it is a strategic alliance. However, it is not a marriage.

The wholesale business is dynamic and so you should be as well. Ensure that you can exit the arrangement at minimal cost. If the wholesaler knows that they could lose their business in a minutes’ notice, they will be up to the mark with their service.

The bottom line is that we only have control over what we do in our business. However, if we understand the intentions and incentives of the wholesale supplier and structure the deal accordingly, success is not so difficult despite all odds. They also provide networking forums where you can discuss your dropshipper related issues.
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