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If your business model involves selling a product of any kind, you know how important it is to have a great working relationship with a reliable supplier. Sure, you need customers to buy what you’re selling. But in order to have a product they can purchase in the first place, you need a vendor. Here’s what our QB Community members have to say about finding and keeping a good supplier.
Finding the right supplier
When it comes to running your own business, nothing beats talking with other entrepreneurs to help you solve a problem. That’s certainly true when it comes to finding a supplier. Here’s how some QB Community members found theirs.
Travis Troyer explains, “I spent months trying to find and source things like high quality, reinforced black cardboard packaging with white print. It wasn’t easy! When people ask me where I get my packaging or my labels, I’m always thrilled to pass along that information”.
On the other hand, let’s never underestimate the power of the Internet. Danielle Vincent’s relationship with her supplier has transcended “strictly business” to become a real friendship. But the way she found her supplier in the first place? An online search.
Go local or look overseas?
There are pros and cons to both. In the UK, suppliers may charge more but they tend to offer high-quality goods and are easier to reach when something goes wrong. On the other hand, ordering goods from China may be more cost-effective, especially when you need a high volume of product.
Here’s what Joanna Misunas has to say. “There are so many perspectives on this subject. I love to keep our business costs down and pass along the savings to our customers. But if I order a new style of box from overseas, I can’t see or hold a sample first, so there’s a huge financial risk for me if I place a big order. I never want to compromise on quality, which I know my customers really value. Working with local vendors means if I have a problem, I can easily reach out and discuss an issue. For me, that’s really comforting.”
Travis Troyer has also weighed the pros and cons of working with domestic and international suppliers. Here’s his takeaway: “I'm kind of on the fence. I believe we are a global society, and some countries are better at some things than we are, and that's fine. Probably 75% of my sourcing is [domestic], but I do buy my packaging overseas. I have very specific packaging needs, and I simply can’t find the right products here. I’ve spent months and months sourcing suppliers in Asia.”
Be prepared to 'woo' your supplier
While suppliers certainly need your business to keep theirs afloat, in most cases it’s up to you to convince a supplier that your business is worth investing in. Like you, suppliers have their own inventory to manage. So they rightly spend a lot of time vetting potential customers to make sure they don’t get stuck with a load of unwanted inventory.
You’ll likely need to present, pitch, persuade and - quite possibly - plead your case with potential suppliers. Leslie Barber, QB Community leader, remembers when she was desperately seeking suppliers.
“When you first start out, you’re selling your business to the supplier. You’ll need to sell your story by providing everything from PowerPoint presentations and bank statements to your research and development process. Your supplier will be making purchases on your behalf – for ingredients, packaging and more – so you have to prove you can pay them. Problem is, if you’re just starting out, you have no active accounts or purchase orders to prove your worth.”
Get on a first-name basis
Once the 'wooing' is over and you’ve found a willing supplier, the business-owner/supplier relationship becomes more symbiotic—you keep each other in business, after all. But this relationship thrives when both parties keep mutual respect top of mind.
Kenny Briggs, an owner of a locksmith shop, communicates openly with his top vendor. “We have one particular supplier we deal with on a daily basis. If we have a large job and need a large stock of supplies, we call them and they give us extended time to pay. Be honest and up-front, and [your supplier] will help out. Remember, they want you to succeed so they will succeed.”
What to do if something’s not working?
While it can take a lot of effort to find a supplier in the first place, that doesn’t mean you should stay with them if it’s not the best thing for your business.
Joanna Misunas likes having close relationships with her suppliers. But when a problem arises, she puts business first. “At times I’ve had to deal with someone who doesn’t communicate or is difficult in some way. I simply can’t take on that extra level of management and responsibility. I try to stay compassionate and neutral, not charged, in my communications. At the same time, I try to trust the outcome if I’m being pushed in a new or unexpected direction. Everything happens for a reason, right?”
Before you go, how do you find the right suppliers for your business? Have you ever encountered any problems? Comment your tips and tricks below!
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