You are preparing to open your business - you know what you are
going to sell, your premises or website are being setup, and you
have your wholesaler all set to go. But is your wholesaler really
ready? What do you know about them? How did you choose the
company with whom you are going to do business? These are, after
all, the people who control your ability to offer a specific
product in a timely manner. They are a very basic element of your
success or failure.
A wholesaler is a company or trading entity that buys large
quantities of specific products at a discount from manufacturers
and then sells each product in smaller lots to vendors, also
known as retailers, who will then resell the product in even
smaller lots to the general public. If you have a business
focused on selling products to the public, you are a retailer,
and you will get your products from wholesalers.
There are a few essentials to look for when considering
suppliers, including reliability and punctuality, company
history, liquidity and financial health, commitment to value and
quality, ethics and trustworthiness, and customer service. Before
deciding on whom you are going to do business with you must
complete some homework by investigating potential wholesalers
in accordance with the six general categories above.
After searching out wholesalers and creating a list of contacts,
your next step should be to directly speak with these potential
suppliers. Talking with someone at the company - making a direct
contact that goes beyond e-mail - should be very simple. This is
actually your first test of their commitment to service. If a
distributor doesn't take the time to connect with you, you will
have grounds to question their concern for customer relations.
When conversing with a wholesaler ask questions regarding payment
terms, turnaround time on orders, quality control, and their
business philosophy. Business philosophy simply means - what is
their company most committed to when it comes to their day-to-day
operation? Be sure to listen carefully, ask follow-up questions,
and request clarification on anything that is not clear. At the
end of your conversation, you should request information about
their company and also ask for business references.
If the wholesaler says they cannot supply references that should
be a warning flag. Any business should be able to provide a few
names of companies or people with whom they have conducted
business.
Also, they should mail or e-mail you some sort of informational
package. This is the first test regarding their turnaround time.
If they forget to send you information you requested or if it
takes longer than 5 business days, you probably want to forget
about dealing with this company. Additionally, what they send
you, how organised it is, and how detailed and professional it
looks will be a good barometer regarding the company's standards
and performance. Read any materials you receive carefully and
check to see if there is some sort of company history and
business philosophy included.
Notice, without risking any money at all, you have probably
already eliminated some distributors while placing others on your
shortlist. Of the six categories listed above you have already
gathered useful information on reliability and punctuality,
company history, ethics and trustworthiness, and customer
service.
Perhaps you have contacted eight companies and you like two.
Search for more wholesalers to interview. A sampling of 10 to 15
will give you a good idea of the range of distributors that exist
and their different policies, standards and services. Don't stop
after speaking with two, three or five. It's just not a big
enough sampling on which to make such an important business
decision.
One important area to weight carefully is company history. If a
wholesaler has been in existence 20, 40, 70, 100 years or more
- that certainly says something about their company. In this
increasingly competitive world, businesses do not continue to
pass the test of time unless they are simultaneously stable and
well run while being adaptable to the changing marketplace. This
does not mean a newly formed company will not serve your needs,
nor does longevity insure your total satisfaction; the length of
a wholesaler's history is simply one of many ways to gauge their
competence and reliability.
After performing your research and reviewing the information you
have collected, you may still be unsure of which distributor you
should choose. You may certainly decide to go with more than one
source for merchandise due to different styles, brands, and price
ranges they offer. You can always go with the wholesalers at the
top of your list, knowing that you still have information on a
second or even third choice, which you could fall back on if your
initial pick proves to be ill-advised.
One thing to remember is that after following through on your
queries your final decision may be based on a feeling - a gut
reaction - rather than on cerebral deduction. Still, the fact is
all of the work you have done has not been wasted. You have used
it to get to the point where you have two, three or maybe even
four sound choices. You really won't know if you have made the
correct choice until your business is up and running - taking
orders and, because of your hard work, delivering the goods.
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