Do you run a retail business? It can be challenging yet ultimately rewarding work, as you can be very successful running your own business, with earnings limited only by the scope and scale of your business. Part of running a great retail business is choosing the right suppliers for your business, such as wholesalers and suppliers of other items required to run your business. This helpful article will share a guide to choosing the right suppliers for your business, so read on to learn more.
What Suppliers You Might Choose For Your Business
The suppliers you choose for your business will vary, such as mobile phone accessories wholesale suppliers if you sell mobile phone accessories, office stationery suppliers for all your pens, paper and other office supplies, and various other suppliers depending on your business needs.
Cost Isn’t Everything
You might think that everything boils down to a bottom line and that, ultimately, the cost of your supplier’s goods is what will make you choose between various suppliers. And while cost is definitely a factor, it shouldn’t be the make or break when it comes to choosing a supplier. There are a range of other factors that should influence your decision, which we’ll discuss in detail during the rest of this informative article.
The lowest cost is not always the best value for money for a retail business. Suppose you want reliability and quality from your suppliers. In that case, you’ll have to decide how much you’re willing to pay for your retail business supplies and the ideal balance you want to strike between reliability, cost, service and quality.
Quality and Reliability
Quality and reliability are a massive factor when choosing a supplier for your business. The quality of the goods they supply is critical here. This is why cost isn’t everything. One supplier might stand out amongst the pack when it comes to cost, but the quality of their product may be subpar. In retail, for certain sectors, the quality of the goods matters because if you sell dodgy products that are prone to damage and breakage, you’ll need to deal with the headache of disgruntled customers, returns, refunds and other issues which will ultimately impact your bottom line.
The reliability of the supplier is also paramount for a retail business. Can they deliver the stock you need in time for a sales period, or keep your inventory full so you don’t run the risk of losing customers because items they want to buy are listed as out of stock? A reliable supplier is worth their weight in gold to a retail business.
Retail businesses will remain loyal to a supplier if they offer excellent customer service, reliability and ongoing support for their customers.
“Some of our customers have remained loyal for over three decades because they value our partnership deeply. Whether they opt for the convenience of online shopping or prefer personalised advice from our experienced sales representatives, Gibson adapts to meet their preferences. Fostering an open and positive relationship through regular engagement with our retailers is essential for Gibson to offer optimal support,” says Tim McCann, General Manager of Gibson Gifts, a leading Australian giftware wholesaler.
Distance
While it may be tempting to source your supplies from an overseas supplier because it is cheaper, you need to ask yourself if this is the best approach. Distance can be an essential factor when it comes to delivery timeframes. If you order from an overseas-based supplier, you’re putting yourself at the mercy of international shipping times and the associated delays that come with container shortages, trade union disputes, dock delays and more. If you choose a local supplier that is close to you, such as in the same state or even interstate, you’re guaranteed a quicker delivery time.
The distance between your supplier and you is also important if things go wrong with a delivery, such as if it is missing crucial stock items or you’ve received the wrong items. With an international supplier, you could be waiting months for a replacement, especially if it needs to be freighted by the ocean. However, a local supplier in Australia can remedy these issues much more quickly and in a matter of days.
Communication Skills
Another factor to consider when choosing the right suppliers for your business is their communication skills. This is vital for any business relationship. Do they answer the phone on the first attempt at calling, or do they call you back once you leave a voicemail? Are emails answered promptly, with your queries addressed and clarification given when required? If something goes wrong, do they give you their assurance that they’ll fix the issue? Honest and open communication between retailers and suppliers is essential for the supply chain functioning optimally. If a supplier isn’t a great communicator, or their communication slips after a good patch, it may be time to consider a new supplier for your retail business.
Speed and Flexibility
Changing customer demand and fluctuations in shopping habits are a major part of any retail business. As external factors such as inflation and the rising cost of living impact people’s spending, a supplier that can respond to this with speed and flexibility is key. You should be able to scale up or down your orders with your supplier when appropriate and as the market changes. As discretionary retail spending is usually the first thing to drop with inflation and the rising cost of living, this is an essential factor to consider when choosing a supplier for your business.
Financial Security
It is always worth making sure your supplier has sufficiently strong and stable cash flow to deliver your supplies when you need them. A third-party credit check will help reassure you that they won’t go out of business or into liquidation when you need them most. The last thing you want is to be a creditor to a liquidated business that has fallen into administration without knowing if you’ll ever receive the stock you ordered or if you’ll get any money back as the administrators decide how and when creditors are paid, if at all.
Customer Service
Finally, your ideal supplier should have excellent customer service skills and manners. After all, you’re keeping them in business by ordering supplies from them, so they should bend over backward to ensure that you, their valuable customer, are happy. This means a quick solution to any problems you face, escalation as appropriate, and the other values and traits we’ve described above in this article.
Making the Choice
This helpful article has shared how you can choose the right supplier for your retail business. We’ve covered what to look for and why the cost of a supplier is not always the leading factor when deciding for your business.