Are you having trouble finding the right supplier? Are you looking for tips on getting the best one? Sometimes finding a supplier can be difficult when there are so many options to choose from. In this article, we’ll provide some tips on what to look for to ensure you hire the right supplier for your business. We’ve previously covered how to negotiate a service contract with a supplier, but this guide will tell you how to find the right supplier.
Expense
The price is always the first consideration. However, do not let your budget force you into finding the cheapest supplier. Instead, you need a competitive, as opposed to cheap, supplier. Competitive means a supplier who can offer you affordable prices for consistent service.
But, how do you know if a supplier is competitive? The first step is education. You need to find out the actual costs of supplying. Put yourself in the supplier’s shoes. Find out how much it costs for him/her to do business. This includes, but is not limited to:
- Shipping fees,
- Third party contracting,
- Tax.
By doing this, you will know whether the supplier’s quoted price is reasonable or not.
Consistency
You need to find a consistent supplier. If your supplier is consistent, then you can rely on them long-term, which will save time and expense further down the track. It will also save you money in the short-term, as a reliable supplier is less likely to make mistakes. These mistakes could be damaged products on arrival, which will not only delay your business, but will also cost money to resend.
To know if your potential supplier is consistent, then first scan through online reviews. This will give you an overall picture. Next, you should contact businesses within your market, to see whether they have used this supplier before. This will give you an insider’s scoop on the supplier. Finally, just ask the supplier what measures or protocols are in place in the case of non-delivery or damaged products.
A consistent supplier is always better than a cheaper supplier, not only because they deliver on time, but also because they save you money, time and stress in the long-term.
Geography
Depending on whether you go for a local or international supplier will depend on what you want. If you go for a local supplier, you will get quicker turnarounds, this will be cheaper. However, local suppliers are often not as well financed as national and international suppliers. This means less can be done if something goes wrong.
Negotiation
Do not be afraid to negotiate. But, before negotiating, make sure you have researched the market. You need to know what other suppliers are offering to leverage prices and terms. Also, try to compensate in other areas for losses. For example, if the supplier will not negotiate the price, instead try and extend the warranty. Also, know your rights under the Competition and Consumer Act 2010 (Cth). You have more rights than you think.
Even with these tips, finding the right supplier is difficult, especially when you are inexperienced. You should consult with a lawyer before signing any supplier contract.
Want to know more? Contact a LawPath consultant on 1800 529 728 to learn more about Suppliers and to obtain a fixed-fee quote from Australia’s largest legal marketplace.
