Growth Strategies
- Growth through product development
- Growth through sales
- Growth through technology
- Growth through strategic sourcing
- Growth through strategic partnering
Negotiate the right deal with suppliers
Know how to negotiate a purchase effectively, using your bargaining power to get value-for-money
Manage your suppliers
Learn how to get the most from your suppliers
Manage overseas suppliers, this may involve some new challenges, but can be an important source of competitive advantage
Outsourcing -How to decide whether to outsource any of your business functions or activities to other companies. Learn to choose the most efficient and cost-effective supplier
Partnerships with suppliers are another key to success.
Work with a manufacturer to develop a new product that is needed in the production of your product. Partnering with other companies to find better techniques in production. This is helpful to innovate and keep ahead of competitors.
Dropshipping
A Dropshipper/wholesaler sends an order made on-line by your customer to your customer on your behalf. They will charge you their trade price and you will have sold it at a mark-up (you make your profit at the point of sale). You will normally place an order with your drop-shipper online and they deal with the rest.
You first step is to compile a list of potential distributors that may or may not work. You should look online and offline, both in newspaper ads and online listings. Evaluate each company and request a quote or price list. From your list of companies compile a pros and cons comparison for each supplier. Make sure that you ask about refund policies, late shipping situations, and other shipping information. There are 5 steps that you can use to determine which wholesaler will be efficient for your overall business needs:
1. Reputation
The reputation of the company will play a large role in how reliable and honest they will be with you. If you do not live in the same area as the distributor it will probably be impossible to meet them in person. Therefore, the only way to determine if their reputation is superb is to review their past history with their previous customers. You can check their reputation in online forums where other business owners can make comments and leave advice.
2. Shipping Options
One of the most important types of shipping involves shipping overseas. You need to enquire about this with the company before making a commitment. Even if you are not going to initially ship overseas, this is something to consider and you should have the option to export at a later date.
3. Pricing
In order to make a large amount of revenue, you need to have a profit margin. If you have to pay high fees to the distributor, this will hurt your profits. However, do not always select the cheapest distributor as this is typically a red flag to their reputation. You should expect at least a 10% discount off of the normal retail price when you are using a dropshipping wholesaler.
4. Payment Choices
Other than the company’s reputation, you should also find out pricing details. Enquire as to whether or not you have to pay when a sale is made, or if you can pay monthly or every quarterly. You should also ask what types of payment options they accept and if there is any type of credit allowances. After you make a relationship with the supplier, you can always try to re-negotiate the terms of the contract to help save you money.
5. Quality of the Products
The quality of the products offered by the wholesaler is crucial to your customer relationships. Poor quality products can hurt your reputation and your future as a businessperson. If the supplier will only ship in bulk, ask for a free sample before making a commitment.