You can earn more profits in your business if you have the correct supplier backing you up with lower purchase costs and timely deliveries.
Here are some ways to get the most out of your relationship with your suppliers and ensure that you get the best possible rates and service.
If Possible, Use More Than One Supplier
If the range or quantity of the items that you purchase regularly is quite large, then it makes more sense to employ more than one supplier, so that if you have a problem with one, you can still depend on another.
If you lose out on a bulk discount by doing this, you can place complete orders to both of them on an alternate basis. This will ensure that you always have a backup supplier in case anything goes wrong.
Think Long-Term
Both you and your suppliers should understand the value of doing business on a long-term basis. This will assure that the suppliers you deal with will be efficient in deliveries and that their rates will be competitive.
On your part, you should pay your suppliers on time – every time – so that they do not have any reason to complain or increase their rates.
Treat Your Suppliers with Respect
Placing orders with your suppliers is one thing, but treating them with respect is also very important. Make them feel appreciated and treat them with respect.
Remember – they are also contributing to your growing business, and they have a business to run as well.
Be Flexible
You should expect that your suppliers might sometimes make mistakes during a delivery. If you have been dealing with them for a long time and you know that their intentions are good, then you should be flexible and adjust accordingly.
You might have problems in making payments on time from time to time, and sometimes your supplier might also need to be able to wait.
As long as these occurrences are few and far between, there should not be any hard feelings; however, if it becomes too frequent, then you need to search for a new supplier.
Start Slowly With a New Supplier
When you are looking for new supplier, be sure to do your homework. Find out two things: whether their prices are fair and whether their deliveries are prompt. Start off by placing small orders and find out whether their systems are in tune with the way your business works.
Only when you are satisfied that the new supplier can give you consistent deliveries should you start placing large orders.
Observe Your Suppliers
Whenever you meet your suppliers for a meeting or over coffee, observe their body language and their expressions. You can find out whether they are under any stress or are trying to get a large order by bluffing just by observing their body language. You can nip any problems in the bud if you can read your suppliers’ reaction to your requirements.
Keep the above points in mind and keep searching for the right supplier for your business. Once you find them, ensure that both of you continue to do business together for a long time. This will increase your sales and your profits.
