How to Find a Good Vendor?
Updated: Oct 28, 2021
No matter the industry, almost every business needs an efficient vendor or supplier to contribute to the long term success of that company. Over time, choosing the right vendor for your business can provide many benefits such as cutting down expenses, building partnerships, and providing consistent quality products and services for your ideal customer. But how would you be able to make a decision on a good vendor for your business? Here we list three steps to take while choosing a vendor.
Deciding what type of vendor best fits your business model.
Depending on the nature of your business, you need to identify what type of product is necessary to keep the operations flowing. Once you have established those products, you will have to research and analyze how you will be able to obtain them on a regular basis. There are many different types of vendors to choose from. Here are a few to consider:
-Manufacturer
Product is made from scratch and can be sold directly from the manufacturer.
-Wholesaler
Purchase items from the manufacturer and resell items in bulk.
-Dropshipping
Supplier receives product orders from the seller and ships out the products to the consumer on the seller's behalf.
-Private Label
Manufacturer creates products for the company to sell under their name.
Reach out to a number of potentials to collect information.
Once you have done the proper research and found potential vendors to work, you will have to contact them in order to find out which company will be the right fit for your business. The initial discussion between you and potential vendors will be an exchange of information about how they can best serve your business. Here are a few points they should be able to cover.
Stability
How long have they been in business? What’s their reputation amongst their industry?
Communication
Do they offer customer service? What are their points of communication? How long does it take to get a response?
Pricing
Are costs reasonable within the market? Does it fit within your profit margin? Is it competitive?
Location
Is the company local? Across the country? International?
Shipping & Handling
How long does processing take? How many days does it take to ship? Do they accept returns?
Order samples
Before moving forward with any vendors, always inquire about sample products to determine quality, shipping, and other aspects of the products. Sample products are usually complimentary with the exception of the shipping fee, but any company you may see as a potential fit should provide samples to assure their products are a good fit for your business.
Choosing the right vendor can cost you time and money. However, with the Watts Group, we can assist you with finding a vendor that best fits your business. If you would like to learn more about how we can assist you, we would love to set up consultation with you!
You can request a consultation by clicking here!