5 tips on how to become a great supplier

19 July 2010 No Comment

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Every business owner wants to grow their business and make profits. New products, ideas and sales strategies can all grow a business, but as most businesses grow, the amount of consumables they use also increase, eating away at profits. Consumables are items such as raw materials, products for resale, stationery, printing and printer consumables as well as staff amenity items such as coffee, tea and toilet paper.

The old adage, paying for convenience, applies in many cases of business consumable purchases. Often, business owners are too busy selling their products and services to spend large amounts of time sourcing cheaper consumables from their suppliers.

There are all types of suppliers in the business marketplace. At one end of the spectrum Greedy Suppliers simply want to make a good profit and don’t care about their impact on their customers’ profits. At the other end, great suppliers spend time to create a business culture, processes and products that help their customers save money and time.

How can you easily tell the difference between a Greedy Supplier and a Great Supplier?

A Great Supplier has an abundance attitude

A supplier who has an abundant attitude knows that there are other suppliers that can serve you and that you may want to compare prices. A Great Supplier will be happy for you to come back to them with competitor comparisons, both before your initial purchase and afterwards if you are approached by competitors. A Great Supplier will be happy to discuss your prices whenever you want to.

A Great Supplier will happily supply apples vs apples pricing

Apples vs apples pricing is pricing that you can easily compare with other suppliers. A Great Supplier will be able to provide clear specifications and unit pricing to enable easy price comparisons.

A Great Supplier will be transparent with freight costs

Many online suppliers offer fantastic prices, but they often make a profit on their freight charges. Typically, local freight in shouldn’t cost more than $8-10, and will sometimes be less. A Great Supplier won’t mind if you ask them about their freight charges.

A Great Supplier will invoice you

A 7, 14 or 30 day invoice means that you can be using the goods before you have paid for them, rather than having your money tied up. Plus, paying on invoice enables you to order over the phone, or online, stops you making impulse purchases at point-of-purchase and provides a good paper trail to keep your bookkeeper happy too.

In addition, paying on invoice means that you can extend your payment time slightly if you have a cash flow crisis. A great supplier will love to hear from you on the day your payment is due and will usually be happy to extend your credit if you are honest about your problem, especially if they know that you do normally pay on the day that you promise. This means you are not paying costly credit card interest fees either.

A Great Supplier will know of other options that can save you money

A Great Supplier will usually have extensive experience in their industry (being Great usually means they have a successful business with many other customers) and will have come across many of the issues or problems that a business might face. When you ask, they should be able to get creative with their response and be able to serve you well.

For example, you might want a consumable item urgently. Rather than be charged $40 for an urgent courier delivery, a Great Supplier might arrange someone else to supply your consumable for that day and ship another one through normal processes. Great Suppliers often have strong, trusted relationships with their competitors, meaning that they can still serve you when things go wrong at their own end.

Do your suppliers qualify for the Great Supplier label by supplying what you need and looking after you at the same time? A Great Supplier, one which supplies the service above, can have a huge, positive impact on the profits of your business.

Author Bio: Danielle Storey – A Great Supplier can have a huge impact on the profits of any business. The Cartridge Family, a national supplier of toner, ink and printers is a Great Supplier. If you would like advice on any aspect of your toner, ink or printer, don’t hesitate to contact Danielle at www.thecartridgefamily.com.au.