Talking to Your SuppliersPosted by aonenetworks On December 7, 2012
If your business requires suppliers (as it probably does) then you know how important it is to properly develop relationships with them. If you’ve gone through supplier after supplier and never really had any luck hanging onto the ones you like, you should be asking yourself a few questions. Start with the ones below.
Are the Payment Terms Negotiable?
If you want to be successful with a vendor, you have to learn to negotiate with them. If they say their terms are not negotiable, oftentimes they aren’t the vendor for you. Otherwise, you can look into extending your terms from 30 days to 60 or, in some cases, even more than that. Negotiate with them and see if they’ll give you a discount if you don’t even use your 30 days and pay them in advance. See if they’ll give you free shipping if you order a certain amount from them.
What is the TOTAL Cost?
We all do it. We look at a price on a website or in a catalog and we just assume that’s the total price and it’s a good deal. However, there are often other fees involved. The most common of those fees is shipping, but there’s handling fees, processing fees, fuel subcharges and more. See which of them apply to your vendor and see if you’re willing to work with them after you know.
Is Their Liability Insurance Proof?
Although the vast majority of companies are trustworthy, and you shouldn’t be doing business with a company that isn’t trustworthy in your eyes, it’s still important to have written proof that the goods you ordered are protected in the event that something bad happens to your shipment. Make sure that the insurance is renewed every year, and request a new copy.