The majority of business owners out there will find themselves dealing with wholesalers and suppliers at some point or another during their business life. Whether youâ€™re running a retail business that relies on the purchasing of stock on a daily basis, or even just a business where you have to buy in things like stationary and consumables from suppliers, weâ€™ve come up with five top tips that every business owner needs to know!
- Get a credit account where possible: This isnâ€™t essential but it gives you 28 days to get invoices paid â€“ which is good because you donâ€™t need to use a bank loan or overdraft to alleviate cash flow problems. Instead you bring the stock in, sell it all, then pay the invoice with the money youâ€™ve turned over and pocket the difference as profit. Using supplier credit accounts to your advantage can help you to avoid business financing altogether.
- Always push for a bigger discount: The more daring you are, the bigger the discount youâ€™ll be able to obtain. If you purchase from a wholesaler in large quantities and those quantities keep getting bigger, make sure youâ€™re continuously pushing for a bigger discount. Even if that discount only amounts to a few percent extra, it could work out to be a few hundred dollars on larger orders.
- Work with a local supplier where possible: Itâ€™s always nice to be able to put a face to a name â€“ and itâ€™s always nice to work with a local supplier as opposed to a supplier half way across the country, or indeed half way around the world. Working with a local supplier comes with many merits â€“ perhaps the greatest one being that you can just drop in and see them if any problems do pop up.
- Query everything: Sometimes suppliers will get a little too comfortable with your custom â€“ delivery times may start to increase, invoices may not be correct, consignments might be incomplete. Make sure you query everything with them no matter how small it seems to ensure you continue to get the best service. By querying small things youâ€™ll keep your suppliers and wholesalers on their toes.
- Always pay your invoices on time: Whether youâ€™re on a credit account with your supplier or you have to pay invoices on a proforma basis, make sure each and every invoice is paid on time â€“ itâ€™s just common courtesy! You canâ€™t expect a top notch service in return if you canâ€™t even pay invoices on time.