Being a supplier means you’re the middleman that connects manufacturers with consumers. A supplier buys goods in bulk from manufacturers at discounted prices and sells them to merchants, contractors, and retailers at a marked-up price.
Being a supplier is a lucrative business, especially if you’re a talented salesperson. However, profitability will depend on having a good eye for value and choosing the right products.
So what’s required to become a successful supplier?
Ensure You Have Necessary Skills
The supply business is undoubtedly profitable, but having robust sales skills and experience goes a long way. More so, having a knack for management for starters and logistics will place you in a better place for being a great supplier.
Being a supplier means sourcing goods at low prices. You, therefore, need to have excellent negotiating and selling skills. You need to believe in your products to help you have a higher pitch.
Solid negotiation skills help you interact cordially with people- manufacturers and vendors. Good business relationships open up substantial product flows to ensure your products constantly flow in and out of the warehouse.
The constant flow of goods prevents disorganized facilities and breaking delays.
Choose the Right Products
Choosing the right products will set your supplier business on a competitive edge. This is where your salesperson skills come in. You need to follow the market trends and consumers’ needs.
What are the quick-moving products? Are the products of good quality? It’s recommendable to choose goods from a reliable manufacturer to avoid refunds.
Whether you’re starting a business or you’ve been in it for years, never compromise quality. If you find the price is high, you’d instead adjust it to earn minimum profits than earn huge revenue with low-quality items.
Evaluate your industry expertise and decide where to place your skills. If you choose to work in the cannabis industry, you can specialize in a particular niche. You can choose to be a reliable supplier of Ccell cartridges to marijuana dispensaries.
Think about consolidation in a particular industry, though it requires niche hunting and specialization on your part.
Do You Have Necessary Tools?
Supply business can be demanding in terms of time, effort, and tools. First, you need a well-equipped warehouse to protect products before distribution. You may also need a climate-controlled self-storage container for the enhanced safety of products.
Hire a cheap warehousing space but ensure it’s safe for your products. If possible, ensure the facility is far from the city. The nearer the warehouse, the more expensive the lease or rent amount.
Lease a facility that’s near the potential buyers and sellers for subsidized shipping costs.
Alternatively, you can become a drop-shipping supplier, commonly known as the online distributor. You’ll manage and coordinate all operations online. The movement of products is directly from the manufacturer to the retailer.
With drop-shipping, you won’t incur warehouse expenses, making your supply business more profitable.
The Bottom Line
These considerations give you a stepping stone towards a successful supply business. But your skills, experience, and market forces will sustain you in the industry.