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As a New business Owner, your idea is great to Source the product wholesale; it seems to be very simple, and it simply means that you can find products wholesale and sell them at retail price. It doesn’t matter what business you are starting as a wholesale source, but just keep in mind that your business needs to be steady and reliable. When sourcing products for business, you might be confused how to source wholesale products and what are some of the key points that one should know before starting the business.
Key Points that will explain to you How to Source Wholesale Products
- Suppliers are aware of how much money every square foot of their warehouse space cost him, as the wholesalers would be getting very low profits with a high volume density.
- Warehouse suppliers would only keep the products with the brand awareness that the customers are aware of, and they make money by selling quickly.
- If you’re directly connected with the small manufacturer as a retailer than be aware as they are indeed facing the stock issue, and their tendency is they run very smoothly out of stock specially during the holidays season.
- If you’re going to start your business online then be careful there are particular manufacturer and retailer that do not want to do their business online.
- So if you need to start up nicely in the industry, then it’s very important to get the business profit margin set before it starts and work directly with the factory as you could be sure that you’re working with a genuine wholesaler. As the fake Wholesaler you’ll get online that looks very genuine but cross check it and verify the information is genuine or not.
Fake wholesaler signs that you should know
They will charge a signup fee for a month, their site does not show any contact details, they will not ask you about the Sales Tax ID, they ask directly how much you can give, and also they’ll make sure that the service provided by them sounds very true and genuine.
Prevention to be taken for fake wholesaler.
Call to that wholesaler if they say “Hello” then you are not speaking to the real man, go to their site and check out every single detail about them, search company name on the internet and where it stands this how the fake wholesaler can be caught.
Methods for how to source wholesale products
- Trade shows: Go to the trade shows and talk to general public
- Drop shipping: Start your small business with the drop shipping service
- Client Reference: you can also try client reference methods to have a direct contact with the suppliers.
Procurement is the act of obtaining and purchasing goods, services or any form of works from an external source mostly through tendering or bidding processes. The goods, services or works have to be of high quality and procured at a very good cost that optimizes the needs of the company or firm. The process of acquiring the goods or services is achieved through various steps that make up the procurement life cycle.
As a procurer for a certain company, it is an internal requirement for the company to start by identifying its needs. This is mostly achieved by developing a short term strategy that involves defining the goals that are to be achieved within the period let us say 3-5 years. The direction or path to be followed and the requirements needed to attain these goals are identified.
Identify the Right Supplier
After considering important aspects such as whether to make or buy goods and services, whether to use a single or multiple suppliers; the next step is to establish the perfect supplier for the required goods and services. An online search could be used, referrals or trade shows. As the lead procurer, ensure that the supplier selected is one you can work with appropriately without collisions.
After identifying the right supplier or supplier, the next thing is to ensure that sufficient communication is done about quotations, proposals, information or tendering requests. You could make use of advertisements where numerous suppliers are involved or simply direct communication where a single supplier is concerned.
Negotiations have to be done to determine the price margins, goods availabilities and the possibility of customizing particular goods and services.
Here the company does an evaluation on the P/S and the accompanying service support. This could be done using a supplier scorecard. The contract will expire only after the P/S has been consumed or disposed of, saving room for reordering.
Management of Logistics
During this stage, supplier preparation, expediting, shipment and delivery and finally payment are completed by the binding contract terms. The services could extend to the installation of products and training of personnel on how to use the products.
All in all, the above cycle is just a representation of an appropriate channel to ensure a successful procurement process. It is important to possess good interpersonal skills so as to be able to relate well with other firms and procure the best quality products and services.