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Allie

A: Good negotiation skills are vital to small business people because it is something we use every day. Whether it is asking a vendor to lower a price or getting a potential customer to sign on the ‘ol dotted line, negotiations are part and parcel of small business life.

Indeed, as my brother Larry is wont to say, “everything is negotiable.”

No, I doubt you need a lawyer to do your negotiating; not only might that be cost-prohibitive, but it would take some of the fun out of the game. If you do not see negotiating as a game, then pull up a chair for Lesson One: Don’t take it too seriously, and most certainly, don’t take it personally. It is just a game.

The first step then in any negotiation occurs ahead of the game: Decide what tack you will want to take. It is conventional wisdom that one should strive for a win-win outcome. In a win-win, you try and get as much of what you want while also trying to help the other guy get what he wants (or at least needs.)

But as is often is the case with the conventional wisdom, it is not always right. Now, I am not saying that win-win negotiations and results are not good things, in the right circumstances, they are great. But not always.

If you have extra leverage, if you are über-competitive, if singing Kumbaya together is not your style, then don’t worry about the win-win – go for it. Just know that tough win-lose negotiations often leave a bad taste in people’s mouth that does not go away quickly.

OK, so once you have decided upon your strategy, then it is time to think about your tactics:

Use questions to obtain undisclosed information: When you wander onto a car lot, what is the first thing the car salesman does? He asks a series of seemingly mundane questions such as: What are you looking for and how much would you like to spend? Far from being humdrum, questions actually help the salesman craft his pitch to you.

It’s a tactic any of us can use. Not only does it make you seem interested and cooperative, but it also often fosters the disclosure of useful information.

Try to avoid making the first offer: While this is negotiating 101, it is still worth remembering. And if forced to make the first offer, be outrageous: “Well, if you really want me to tell you how much I want to make, I guess $50 an hour would be great!”

Don’t fall in love: When it becomes clear to the other side that you have to have something (whether it be a price, issue, or thing) you’ve tipped your hand and your opponent will use it against you.

Have a red herring: Having something you do not really care about and are secretly willing to give up can creates goodwill by making you seem reasonable when you do give it up.

Make unilateral concessions: As an adjunct to the rule above, a carefully crafted unilateral concession, even of a red herring, get you something in return.

Finally, consider

The calculated blowup: Sometimes it behooves you to have people dislike you a bit, or, even better, fear you somewhat. Say that you bought a new computer system and you have had the company that installed it out to fix it two or three times. If the system malfunctions yet again, then it is time for the calculated blow up.

Call the computer company get mad, really mad! Threaten to sue! Do not back down. They will not only try and calm you down, but more importantly, they will work to placate you. Later, you can apologize. But know this too: They will not want to deal with you like that again and will be a bit afraid of pissing you off again. You just may get what you want because they will want to avoid another confrontation.

Today’s tip: Applications are being accepted through April 6^th for the Dell Small Business Excellence Award which rewards innovative uses of technology. It’s a chance to win $50K and a day with Michael Dell. See details here.

First, you will need to decide what types of products you want to carry. It’s best to be flexible with brands, colors and sizes, as that will open up your opportunities when dealing with suppliers.

Wholesale product sources

*Manufacturer: Most times buying direct means a high minimum order. Usually manufacturers will have smaller retailers buy their product through one of their local distributors. You can find this information either on the manufacturer’s website or by contacting them directly.

*Distributor: Usually distributors tend to carry a large variety of products in a certain category (say pet products) from several manufacturers. Their prices are slightly higher than buying direct, but minimum quantities are usually low and you have the convenience of purchasing products from different manufacturers on one purchase order. Once you’ve narrowed your product category, you can find distributors by searching online or by getting a distributor list from a manufacturer.

*Factory: You can get a great deal on price if you agree to import a 20′ or 40′ container of product direct from the factory. Lead times are typically 30 days or more and you will need to set up shipping with the factory or the manufacturer. Doing thorough online searches for importing product in your category will lead you to many factory sources who sell direct.

*Liquidator: If you are flexible about your product needs, this is a fantastic way to get a real break on price. Many times you can purchase a bulk load of product for up to 75% off the original wholesale price. Consider your purchases carefully because once a product is sold out it’s usually gone for good. Many liquidators have online sites where you can browse products and order right online.

*Online Auction: By persistently checking various online bidding sites, you can end up with a bargain-priced wholesale lot. Be sure to ask the seller if the item is a closeout or if you will be able to purchase again in the future. Reading the seller’s feedback will give you information on how they have done business in the past.

*Trade Shows: Attending trade shows is a great way to find the newest products and get wholesale contacts from a variety of sources. Both manufacturers and distributors exhibit at trade shows, so you will have plenty of products to choose from and you will be able to meet your supplier face-to-face.

Choosing the right vendors

After you’ve decided on the sources for your products, it will be important to pick your particular vendors. When dealing with manufacturers, distributors and especially overseas factories you will want to do an online search on the company name, read any online feedback and ask for references. You want to make sure that they are reliable, available and offer high-quality products. Be sure to find out their policy on returning defective and overstocked merchandise.

A variety of choices for acquiring your products means competition on price, service and shipping-all good things for you! It may take some research time in the beginning, but once you have a good set of product sources buying will become automatic and less overwhelming.

Well hopefully you don’t have one single supplier! If one of your major suppliers does in fact notify you that they are closing their doors, there’s no need to panic. Simply contact your other supplier(s) and speak with them about the possibility of you moving more business their way. Determine if they can handle the new demand and talk about pricing options with them (as they may offer a discount for more business). Also remember to contact the supplier that is going out of business and ask if they have any products that they can still supply you. If they do, you might be able to get a "going out of business" price on the items.

In the event that you have paid for items that have yet to be shipped when the notification of the closing comes, DEFINITELY contact the supplier to figure out if you will be receiving the products you paid for. If not, ask about taking other products up to the equivalent value you’ve already paid. You may have to enter into court proceedings but this of course is highly undesirable as it will likely cost you more to hire a lawyer and pay court fees. Try to work something out directly with the supplier but if this does not work, make sure you consult a lawyer for further action.

The best way to avoid any of this is to pay attention to clues that might indicate the supplier is in trouble. Some of these include:

*Difficulty in reaching the supplier by phone or email.

*Repeated lag in shipping timeliness and lack of product.

*Employees begin to quit and/or ask if your company is hiring.

The best plan is to always have back up suppliers. This will save you a fortune in time and money in the event that one of your major suppliers does indeed go out of business.

Going into a retail business for yourself means taking risks with your money and your future. Not only do you have to worry about finding customers and keeping positive cash flow, you have to keep a steady supply of merchandise. This means finding a reliable supplier or distributor. But with just as many fraudulent or overpriced suppliers as there are legitimate distributors, committing to a supplier can be a scary thing.

Good business sense can help you avoid many of the scams out there, but there is no way to avoid them all. Fortunately, a scammer’s charade is never impervious. By using the following tips, you can avoid everything but a skim across the surface of a bad business experience.

Just because it looks like a duck and sounds like a duck… There are many companies out there who claim to be wholesale distributors, when in fact they are drop shippers who buy their products from wholesalers and mark them up before selling them to you. This not only costs you money at the purchase, it costs you future profit potential, since you will have to raise the price of the product yourself to make any kind of profit. One thing you can do is to take note of the variety of products a supplier sells. Distributors that sell many different items rather than specializing in certain products might just be drop shippers.

Some things in life are still free… If you’re just starting to work with a distributor, they may require a small set-up fee or a minimum purchase to get started. However, this is the exception, not the rule. If a distributor tries to charge a subscription fee, add-on fees or per-item fees, ask them to explain the charges and plan to move on to another company.

No name, no number, no service… A legitimate business isn’t afraid to attach its name and contact information to its web pages, so if the supplier you’re looking at doesn’t have a contact number and address, tread carefully. Anyone can invent an email address and start a website, and you should be able to gather enough information from a supplier’s website to do the proper background research on them. When you do order product, your supplier should ask for your tax ID number.

Let your fingers do the walking–um, typing… In today’s information age, legitimate companies are easy to find. Even start-up companies will have a trace of information somewhere online. The Better Business Bureau maintains information on thousands of companies, and their website is easy to use. Whois.net is a great place to research a business website. Just by typing in the domain name, WhoIs will tell you if the site is registered under a company or an individual. If you see a person’s name as the registrant, you might be dealing with a middleman.

Sales Pitch 101: Your supplier shouldn’t be trying to sell you products. If you visit a distributor’s website and it includes a sales pitch, you’re probably dealing with a middleman. That isn’t to say that distributors won’t have any kind of marketing on their site, but they don’t have a need for aggressive sales techniques. On the same note, your supplier shouldn’t be trying to sell you other services. At the very least, this indicates that he or she is a dabbler and might not be around long.

Hello, Smith residence… If you really want to find out the legitimacy of a potential supplier, call their business number. If someone answers the phone with a simple “hello,” hang up. Although many acceptable businesses are run from a home office, there should still be some kind of indication that it is a place of business. While not all companies can afford a receptionist, they will at least answer the phone with the name of their company.

If all else fails, contact the manufacturers of the products that you plan to sell and ask them who their authorized distributors are. They may suggest some strategies for selling and point you in the direction of their best suppliers.

Be forewarned, the evaluation process should be lengthy and detailed. Not only should the outsourcer interview each of the outsourcing candidates according to the requirements of your company, a thorough research online should be done as well. That’s important, as you should not assume the word of the outsourcing company to be 100% accurate until you have talked to past or present clients, read reviews, etc.

Since every company’s needs are different, there isn’t a single evaluation formula that works for everyone. However, going through this list should help most businesses simplify the process and minimize the risks of hiring an outsourcing company.

Decide exactly what you need

It sounds crazy, but most companies start looking for an outsourcing company with only a vague idea of what they want, for example ” a call center”. That leaves the outsourcing company in charge of filling in the blanks for you. And, if there’s something they don’t offer (24 hours-a-day live operators) then you don’t need it. It’s important for the outsourcer to put down on paper the exact requirements they are looking for. For example, “24 hours-a-day live operator call center with 100-200 employees, excellent English speakers and familiarity with the IT sector”.

Looking at the outsourcing company’s size

In the case of your outsourcing company, size does matter. If you start out with a company that is too small, then it may be hard to expand your project later. Also, what if the vendor loses a client or two – will they go under? Then again, if a vendor is too large then you might get lost in a sea of other clients, you might not get the best workers on your team, or you might not be able to talk to the right people right away when a problem arises. A rough guideline to use is that a company’s outsourcing vendor should be between five and ten times that of your project. For example, if you outsource a project that is worth $1 million a year, then the vendor’s annual billing should be between $5 and $10 million.

Industry expertise

Does the vendor you hire need to have experience and or expertise in your particular industry? Will they need to know certain technical lingo to be able to effectively communicate with your customers or your employees? For some companies that will be a necessity, for others it won’t matter. Take an in-depth look at the outsourcing project and decide if this will be a requirement and exactly what the requirements will be, as far as experience, expertise, knowledge about specific programs, etc.

While these aren’t all the evaluation techniques, it’s enough to get you going in the right direction. As mentioned earlier, once you have narrowed your list down to just a few companies, do some online research to find unsolicited reviews from past or present clients. Look in discussion forums, do a Google search, etc. Do as much research as you can and talk to as many clients as you can. Then, once you have chosen your vendor, do a small test project so you can see how the outsourcing company does in action. If they meet your expectations, then it’s time to sign the contract and begin your long-term project.

In our last article on researching wholesale vendors, we talked about the different types of wholesalers you can source from and how to choose the best option for you. In this article, we’ll be talking about the importance of always thoroughly researching each wholesaler you are considering doing business with. Taking the time to do so before you give them your money will prevent future headaches and empty bank accounts. Here are some simple ways to ensure you are dealing with a reputable wholesaler:

Where to go to research a wholesaler’s background:

- The Better Business Bureau – www.bbbonline.org : See if any complaints have been filed against them.

- The Rip-Off Report – www.ripoffreport.com : See if any past customers have made complaints about the company.

- Dunn & Bradstreet – www.dnb.com : Get in-depth company information such as how long they’ve been in business, how many employees they have, where they are located, etc.

- Alexa – www.alexa.com – By entering in a website and clicking on the “site info” link you can see if others have made comments about them, how long they’ve been online and how much web traffic they really get.

- Who Is – www.whois.com – Find out who owns the domain name and where the company is located.

- Google – Doing a search of the company name and website will let you see if past customers have made any comments regarding them in online forums or blogs.

What questions to ask once you’ve weeded out the potential problem-makers:

1. What companies are you currently working with? Write down every name and then call a few and ask how their dealings have been with that wholesaler.

2. Are you a factory-authorized wholesaler for any manufacturers? If so, which manufacturers? Write down which manufacturers they claim to be an authorized wholesaler for and then call that manufacturer and ask them. Typically a manufacturer will only have a handful of authorized wholesalers, so this will be easy to find out if they are fibbing.

3. Will you email me a copy of your current wholesale price list? Once you have that, do an online search for several of the items and see what prices you can find, both wholesale and retail. You want to make sure that their prices are truly wholesale and not just a third-party markup.

4. What are your payment terms? Do you offer Net 30 terms? As a new buyer, you will most likely be asked to pay upfront. Always pay with a credit card, if possible, because if for some reason you don’t receive the merchandise the credit card company will be able to get your money back for you. Never work with a company that demands a wire transfer, Western Union, Money Gram or other unsecure methods of payment.

5. What is your minimum order? When comparing companies, it will be helpful to know how much you are required to initially purchase.

6. Is shipping included? Some wholesalers include shipping at no cost, while others charge extra.

7. What are your return policies on defective and damaged merchandise? Some wholesalers will give you a credit for faulty merchandise, while others won’t.

There are a variety of choices for finding wholesale products-and that means competition on price, service and shipping, and that’s good for you! It may take some research in the beginning, but once you have a reliable set of wholesale product sources buying will become automatic and much less overwhelming.

Starting the search early provides the luxury of time: time to accurately determine the services and supplies needed; time to shop around for the firm or individual that provides the best fit with company needs; time to compare prices; time to negotiate terms; and time to weigh options and gather the most information possible before making a decision. On the other hand, waiting until the last minute to begin the search minimizes all of these advantages.

Starting the search before needs arrive requires planning. Because every growing business eventually will need to establish ongoing relations with vendors, lenders, etc., management should create a list of projected needs in these areas, well before those needs exist. You can then make initial contacts, interviewing candidates in depth. Based on the interviews, lenders and outside contractors can be selected, so that immediate action can be taken when actual needs arise.

A well-designed business plan should include projected future needs for vendors and lenders. (Future need for subcontractors often is more difficult to determine.) Using the business plan as the basis, the need for vendors and lenders could include the following criteria:

Vendors/subcontractors
1. Projections for growth of existing operations/production in terms of supplies and outside services required. This should include timelines for revenue growth, employee growth and quantity of output.
2. Projections for new operations/production, including projected revenue, required employees and output.
3. Establishing relations with local and nationwide temporary staffing agencies.

Lenders
1. Projecting financing needs, specific uses of funds and dates for funding.
2. Working with lenders while setting up new or expanded operations, so they will be part of the project rather than outsiders.
3. Setting up immediate lines of credit to establish creditworthiness and to cover initial set-up expenses of new or expanded operations.

An ideal scenario for setting up vendors/subcontractors and lenders in advance might go something like this: You approach your lender months in advance with detailed plans for your new or expanded operations. These include (just as in your business plan) why you need the funds, projections for revenue growth, how you will use the funds, when you will need the funds, and how you will repay. This is a scenario lenders love because it involves them in every step of the operations they are funding. In addition, this advance time allows you to contact potential vendors and subcontractors to determine needs and negotiate terms, making these terms part of the loan package.

Article used with permission from the National Federation of Independent Business. NFIB is the leading advocacy organization representing small and independent businesses. A nonprofit, nonpartisan organization founded in 1943, NFIB represents the consensus views of its members in Washington, D.C., and all 50 state capitals. Visit www.NFIB.com to learn more.

Furthermore, as venues such as eBay and Yahoo Stores attempt to arrest the growth of counterfeits from taking over their sites, it is becoming increasingly important for wholesalers and small resellers to take necessary steps to protect themselves from getting duped into purchasing fakes.

Why? Because, quite simply, it is illegal to sell counterfeit merchandise. And as a seller, ignorance is no excuse. It is your duty to know the provenance of the merchandise that you resell for capital gain. Furthermore, you need to be able to demonstrate that you have taken the proper steps to purchase authentic merchandise.

So, how can you protect yourself as a buyer of goods? If challenged by a brand, or a third party venue, how can you demonstrate good intent on your part, and avoid serious legal repercussions (and, you can be certain, if you are selling fakes, it will catch up with you one day)?

Fortunately, there are a number of steps that you can take to protect yourself and avoid at least 95% of the scams that are out there.

Here are 10 Golden Rules that you should scrupulously follow when purchasing trademarked and branded merchandise from third party vendors:

Rule 1 – Use your common sense!! If a deal is too good to be true, you can be sure that it is not true. For instance, Louis Vuitton(TM) does not have sales and burns all its surplus, so basically if someone is selling new Louis Vuitton(TM) merchandise, it is fake – and that probably means everything else they are selling is fake too!! Prada(TM) handbags do not sell for $50, period. Got it?

Rule 2 – Know your brands. If you are selling a brand, please do your due diligence on it – research it before you sell it. This is easy to do and will save you a lot of problems later. For instance, authentic Chanel(TM) sunglasses are very, very hard to purchase in the excess market, over 90% of them are fake. This is easy to learn. Chanel(TM) is a brand that is licensed to Luxottica(TM), the largest manufacturer of designer sunglasses in the world. And they also own Sunglass Hut(TM) retail stores. So they do not need to sell their surplus sunglasses, they keep them in-house – and thus, it is very hard to get them. This is different from Gucci(TM) and Christian Dior(TM) sunglasses. These are made under license to Safilo(TM). Safilo(TM) does not have its own retail distribution, so it outsources its surplus inventory and, thus, it is easier to find them in the surplus market (which does not mean that all Gucci’s(TM) are real, of course!!).

Rule 3 – Quality Control. This is the rule that most people do apply, but it is a lot harder than people realize to spot a fake. Sometimes, there are just cheap knock offs, and these are easy to spot. However, many fakes are actually exactly the same as the real thing. So, when inspecting merchandise, do you know what to look for? The best way is to go and buy one of the real ones from an authorized store (you can always return it later). If you cannot do this, then check two samples side by side. Count the stitches – the stitch count should always be the same. Check the labels – the content, font, positioning. Smell the merchandise, silly as it may sound. Measure it. And know your brands – every brand adopts certain anti-counterfeiting measures, so try to search online and find out what these are. And, finally, if you are investing a lot of money, there are specialist laboratories that will do a full spectrum of tests for you. Oh, and one thing – pay for a sample if you have to. Better to lose a little than a lot!!

Rule 4 – Pricing. The price that you are being asked to pay for a piece of merchandise tells you a lot about the merchandise. Much of this is the application of Rule 1 – common sense. For instance, if you search on eBay, you will see a lot of listings for black Prada(TM) micro fiber MV515 handbags. They retail for $236. They are on eBay for as little as $50. Most importantly, they retail for 136 Euros in Italy. So do the math: These bags are part of every season’s collection, with minor modifications each season, so they are never heavily discounted. Best price you will pay in Italy is 50% of retail, plus you can get your Value Added Tax back upon export (20% in Italy). So that is 56.66 Euros. The current exchange rate is $1.35 to 1.00 Euro. So that is $76.49. Then you have to import them (shipping costs, say 5%) and pay US Customs duties, which are 19% for synthetic material handbags. Now the landed cost is $95. And the seller has to make a profit for their efforts. So, basically, unless it is fake, are you really going to find an authentic MV515 handbag for less than $110?? No – and apply the same pricing analysis to all your purchases. Understand and be familiar with the normal surplus price for different product categories that you specialize in.

Rule 5 – Know who you are buying from. You have to know who you are buying from. The best is to always visit their warehouse/showroom and get to know them. If you cannot do this, then it is essential to only deal with vendors that:

• Have a US domiciled business

(are a legally incorporated company within your jurisdiction – whether it be the US or any other Country) such as a Corporation or an LLC.

• Have a US address, together with contact details – phone, fax, email address

(non-free), website, etc. The more the better.

• Have a trusted and good reputation within your merchandise category. Check them out, or verify third party references.

You really want to avoid purchasing trademarked/branded goods altogether from vendors that do not meet these strict criteria – unless you are buying the goods yourself overseas. You have absolutely no recourse if you have any problems. You are just exposing yourself to be extorted. If a trademark owner comes after you, how are you going to catch up with your supplier? You do not know where they live or how to find them. Are you really going to sue a supplier through the Italian Law courts? No, did not think so.

Rule 6 – Chain of Title. Everyone always asked for the so-called "Sanitized Invoice". Frankly, these are generally not worth the paper that they are written on unless they form part of the "chain of title". The chain of title is the trail of invoices from the original trademark owner, or authorized third party seller, to you, the buyer. This is what a trademark owner is going to look for when they come after you – that you form a link in the appropriate chain of title, and that you have the paperwork to back that up. A sanitized invoice on its own does not give you this at all. In fact, you can go online, or to a street corner in Italy, and buy lots of "sanitized invoices" – they are all useless. You need to be in the chain of title. What this means is that, having adhered to Rule 6 above, you get an invoice from your supplier. That invoice must specify exactly what you purchased including the brand name written out in full, and the style number of the items that you purchased. In addition, the invoice must specify that the goods that you are purchasing are guaranteed to be authentic. This invoice is much more valuable to you and will protect you far more than a sanitized invoice. Of course, if you are buying a large volume of merchandise, you should also ask to inspect or receive copies of the suppliers own invoices with its suppliers. Many suppliers are reluctant to provide these as the do not want to divulge their sources, and this is understandable. Furthermore, you can then reuse these invoices time and again outside of the control of your supplier to protect your own sale of counterfeit merchandise (a practice known as "mixing"). Accordingly, many genuine suppliers are very wary to provide original supplier invoices. And, as long as you have fully applied Rule 6 above, and have the invoice in hand as specified here in Rule 6, you are generally going to be OK.

Rule 7 – Know the US Customs & Import Laws. You must research and understand the US Parallel Import laws. It is completely within your rights to import authentic merchandise from non-US domiciled brands and resell them, within certain limitations. However, it is not permitted to import US domiciled brands, such as Ralph Lauren(TM) and Tommy Hilfiger(TM), into the US without the permission of the respective brands. So know the rules up front and avoid obvious mistakes and pitfalls.

Rule 8 – Start Small and Insist on Returns. When you are starting out with a new supplier, always start small. Do not be bullied into a large order. That in itself is a red flag. Furthermore, insist on your ability to return the merchandise if you are not happy with it. After all, this is your right. Again, another red flag if the supplier does not accept returns.

Rule 9 – Pay with a credit card. Credit card payments protect you, they are always better than cash or bank wire transfers, until you get to know a supplier and your orders grow in size. If you use a credit card for payment, keep records, and you can always file a chargeback.

Rule 10 – Use your Common Sense!!! Yes, that again. And again.

If you apply these 10 simple rules, you are not going to avoid every scam, but you are going to avoid 95% of them, and while you are at it, you are also protecting yourself from any legal liability. Good luck out there!

Before we start dealing with vendors, let’s discuss what makes a good buyer or rather a great buyer.

1. The best buyers are those that understand that buying is an art, not a science. Buying is an ever-changing, market-driven skill, forever in a state of flux. Some things are basic accounting – like I sold 1,000 batteries last year and my customer base is growing at 10% so I should buy 1,100 this year. But the majority of what you buy to make you different from your competition, is based on pulling together all of the information you have gathered from your research, readings and interaction with customers and employees.

1. The best buyers understand that buying is actually selling. You are selling your store as well as yourself to vendors to get what you want. A great buyer makes a vendor understand that having their merchandise in your store will be an asset for the vendor.

1. The best buyers understand that money is made in the buy. So do your homework before committing to the price on an item. Know what the competition is offering. Always negotiate with the following in mind: to serve your customers well, to make sure these customers will be getting the most for their money, and obviously you need to get the most for your investment.

Preparing for the buy is the most crucial, yet the most difficult aspect of your job because:

1. Temptation- As you begin dealing with several vendors in several different settings, whether in their beautiful showrooms or in booth after booth at a trade show, the temptation is always there to buy a lot more than can actually fit into your store – or your budget.

1. Timing- The timing of product coming into your store is vital. If you give a vendor an order today, you need to know when it will arrive. Too early or too late will play havoc on your sales and selling space.

1. Planning- Paperwork can be a comfort or a nuisance, depending on your point of view, but planning and keeping the paperwork organized is vital to your long-term buying success. Never, and I repeat never, make a buying decision until you are sure it fits within your financial buying plans.

When you are dealing with vendors keep in mind:

1. Be prepared- Know your store, know your customer, know your niche intimately. Know the competition, know how much you have to spend and know the reputation of the vendor you are dealing with.

1. Negotiate with the right person- Make sure you deal with a decision maker for this vendor, not just an order taker or gatekeeper. You may be small but you are going to grow. Convince the vendor that you are someone to watch and it is worth the boss’s time to meet you.

1. Give yourself room to maneuver- Without appearing too coy, don’t back yourself into a corner by being too black and white in dealing with vendors. Always have a backup plan if you really want a certain product.

1. Don’t give away too much too soon- Vendors can sense when a buyer is over anxious for a product. When this happens, buyers lose the leverage they had when they walked into the booth. Like gamblers maintain their "poker faces", buyers need to have their "game face" on when dealing with vendors. This does not mean you have to be stern or dour. Be warm and pleasant and have a good laugh and vendors will tend to give you a break. Just don’t seem too over anxious.

1. Be prepared to say no- Saying no is the hardest, and yet the most essential skill for a buyer to learn. If something is just not right for your organization, like price or case pack, you have to be prepared to say no and walk away. Often the vendor will come back to you with the right deal. I call this "buyer chicken". Who will blink first?

1. Make your word your bond- In buying, as in life, ethics make the man or woman. Your word is your bond. If you commit and give your word, make sure you follow up and execute what you say you are going to do. Vendors, knowing they can count on you, will help you in many unexpected ways.

Buying goods from the right resources is the very heartbeat of running your business. No matter how dynamic you make the store look, or how good the location of your store, if you have the wrong goods at the wrong price, you just won’t make it in this highly competitive world of retailing. Entrepreneurs thrive on the challenges of finding the right products at the right price at the right time. That is the inner strength that drives us to succeed.