Regardless of the types of products or services you offer, if you own a small business then it is wise to always maintain good relationships with your suppliers.
Whether we like it or not, a supplier can impact on the quality of your products. Therefore, maintaining a quality relationship is critically important to your business.
Below are a few tips on how to negotiate the best deals with your suppliers.
Know Exactly What You Need
Whilst it is fine to ask for product recommendations from your supplier, you should put together a list of the exact things you want before approaching any of your suppliers. The list should contain what you’re seeking from your suppliers, including the exact products and/or services you require, payment and delivery terms, price and quality of the goods, as well as after sales support such as repairs, maintenance or warranties (if the supplier offers that). This will serve to streamline your communications, and give you the opportunity to get your products faster.
Pricing And Quality
Pricing always should play a key role when choosing your suppliers, but it shouldn’t be the determining factor. Always going for the cheapest suppliers is rarely the best course of action. For example, you need to check with all your different suppliers to ensure if they offer after sale services if that is something you need. You would want to check for reviews online, and you may want to speak to peers and colleagues in your industry to gain insights into their experiences with various suppliers. A recommendation is worth its weight in gold.
Research The Availability Of Products
Take the time to research and identify whether the products you need are available. Are you aware how many other suppliers can readily supply those products to you when you need them? It is always important to ensure that a product is not available in short supply or exclusive, as any supply shortfalls can have a devastating impact on your business if you don’t have the chance to plan around it accordingly.
Learn How To Negotiate
Being aware of product availability is one element, but coming to terms for the right price with your suppliers is also key. You’ll need to consider what you value most from any supplier, and your budget in negotiating with them. Never be afraid to clearly state your requirements for the transaction to occur; suppliers would prefer to work closely with you to find a mutually beneficial solution rather than lose you altogether as a customer. Before committing to any supplier, ensure that you are completely satisfied with all the details. If possible, take the contract away and seek the opinion of a professional before signing it.
Finalising The Details
Before finalising any of your dealings with a supplier, it is important to stipulate your expectations of them.
It is recommended that you get in writing details such as penalties for defaults on the contract, payment terms and other inclusions.
Regular Review Of Deals
It makes solid business sense that you just don’t make an agreement with a supplier and fail to review it on a routine basis. For example, checking the quality of the goods supplied can reveal inconsistencies in manufacturing that may impact your own profitability. You’d naturally expect, that if they want your ongoing business, that your supplier keeps in contact with you, but it is important that if they don’t that you are active in staying in contact, as this will aid you in ensuring that you get everything as agreed on the contract.
If you’re looking to get some extra funds together to put a deal together with one of your suppliers, talk to the team at Unsecured Finance Australia today about a loan.