Negotiating with suppliers is a fine art almost akin to walking a tightrope, and it is impossible to become a success till you master it. Marketing books go on and on about how the customer is king but say little about wholesale suppliers. The truth is having great customers is of little use if you get arm twisted or, worse, cheated by your vendors. Profit is sales revenue minus cost, and low cost can only be achieved through a better understanding of how the guy who sells to you thinks.
The first thing to remember is that you must always create options. If you have only one supplier, chances are that you will have little or no bargaining position however good your communication skills. Even if you want to place the bulk of your orders with one vendor, try and maintain relationships by buying small quantities from others. This ensures that your primary seller does not take you for granted and also creates a back-up option for the future. This is where a wholesaler list comes in handy. Make sure that you have at least 3 or 4 reliable names for the products that you deal in. Keep adding to the list whenever you can.
It is also very necessary to keep communication lines open with suppliers at all times. It is important to be discrete and transparent, all at the same time. The industry is small, and falling out with one big seller can blacklist you with many others. Try and help out people when you can. You never know when you may need to ask for a favor in return.
The third thing to keep in mind is making sure that you stay updated with market information. Knowledge is power, and unless you know the prevalent rates or market trends, you will never know if you are getting a good deal or not. Subscribe to trade magazines, and become a part of popular wholesale forums to get tips and insights.
http://www.esources.co.uk/ is a leading wholesale business forum that helps users learn how to work best with suppliers, creating UK wholesalers lists, and other useful concepts and tips.
