Choosing the right wholesale producer can be one of the most important choices that you make as a business owner. Your supplier plays a big role in determining how you give your product prices, what products you offer, and even if you can get something to your customers on time.
This is a big enough decision.
However, it doesn’t have to be scary, as long as you know how to make a decision. We have collected guidelines to help you choose the best supplier.
Read on for tips for choosing the right wholesale suppliers.
- Understand your distribution channel
Before you start calling a different supplier, it is important to find out where you fall on the supply chain. It will help you start contacting a business that can help you.
There are three main types of wholesale. At the very top of the supply chain is a producer, those who make all products in the first place. They not only make products, but also sell to wholesale traders.
Next is a regional distributor, who buys goods from producers and distributes them inside (you can guess) a certain area. Finally, you have workers, who sell to places such as local grocery stores and mother and pop shops.
Depending on the industry, sometimes there are also exclusive distributors who are the only one who has the right to sell certain products.
- Try the manufacturer
Before you enter the research, you can always start by asking the manufacturer first if you can buy directly from them. Smaller boutiques do this with small producers all the time.
Your luck with this will depend on the industry and how much the manufacturer is. Smaller businesses will usually buy from large traders because they have not started selling many products. Larger businesses, on the other hand, can buy in large quantities from large traders at lower prices.
If the manufacturer says no, then it’s time to start your search for wholesale traders.
- Network
The best offer is not always online. Don’t be surprised if your competitors know about the best offer and just keep information close to the chest.
To try and feel where other people buy their products, is always a good idea for the network. Join professional organizations and other groups in your industry to meet more people and build your network.
If you devote enough time to creating a quality relationship, you get a good chance to be appreciated with insider information.
- Go to a trade show
A good way to start a network and meet the wholesale potential is to go to a trade show. Because they are directed to retailers, you will be able to find everything you need in one place.
You can not only market your own business, but you will also have the opportunity to talk to prospective wholesale traders. This is a good way to first contact someone. Plus, if you can foster a direct relationship, it will help you when it’s time to negotiate prices.
- Read the review
Can’t get to a trade show? You can still try to explore some information about various wholesale suppliers by reading their reviews online.
You want to see if they have great customer service, send their products on time, and are generally easy to do. If you see many negative floating reviews, it might be a sign for you to avoid the wholesaler.
It is very important to see if they have good customer service – you want to know that they will help you if something goes wrong.
- Shopping around
Even if you think you have found the perfect wholesale, always smart to shop to see if you can get a better price elsewhere.
There are websites and directories for all, and wholesale traders are no exception. Check the main online markets to trace various wholesale traders and find the right people for your price point.
