Researching Wholesale Vendors
Posted on September 6, 2007
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.
Product Sourcing
How to Cope with Seasonal Product Demand
Posted on April 4, 2008
The old adage says 'variety is the spice of life' - but if you are in business, you know that variety in customer purchasing patterns can be an extremely stressful issue to deal with. Some seasons will see a trend to fewer purchases - other months, everything you have on the shelves will be selling. While you can't change your customers' buying patterns or convince them to buy what they don't want, you can use a little logic, research and planning to try and get a better picture of when they are going to want things, what they may want and then prepare accordingly. Read More »
How to Track Market Tends in Order to Spot New Products Early
Posted on April 4, 2008
Whether you own a brick-and-mortar store or a website, continuously finding new and interesting products is crucial for any store's success. With so much competition it the retail arena, it's important that product sourcing is thought of as ongoing process, rather than something that is done just a couple times a year. Staying on top of industry trends and the newest products requires time and effort but, as a bonus, it can be fun too! Read More »
Tips for Renegotiating Prices and Terms With Your Suppliers
Posted on March 27, 2008
Most business owners just accept their vendors' prices, payment terms, shipping terms, etc. as is, without ever questioning them or trying to renegotiate better terms. But the truth is, as a buyer, you have the leverage to get better pricing and terms - and it's all just a phone call away. Here's how. Read More »
