Vendors… More than Just Suppliers

Competition online can be fierce. Product search ads endlessly proclaim “Absolute Lowest Price,” “Best Price on the Net” etc. Consumers wonder “Who really has the best price?” Vendors wonder, “How can they do that?”

It is crucial these days to think of your vendors not as suppliers, but partners. After all, they control the flow of merchandise into your warehouse. Sound vendor relationships provide extra value to you and your customers.

Make a Good First Impression

When considering a new line of products, make those first meetings with prospective vendors count. Explain your business fully, give them a tour and introduce your team. Most important, make sure they understand the difference between online and brick-and-mortar merchants. Many vendors don’t grasp the Internet concept yet. Some feel that e-merchants have less overhead, so they can charge more. E-merchants have just as much if not more overhead, and vendors should understand.

With each new line, track sales over a six month period. If your purchase orders are getting bigger, begin negotiating and working that vendor relationship.

“Working the Deal”

Vendors frequently offer line-item discounts as ongoing incentives. You can pass along this extra “kicker” to the consumer as a lower price, or keep it for a bigger bottom line.

Once the deal is worked, decide whether to stipulate some terms and conditions. Our pet division has a mandatory “Promotional Agreement” for all of our promotions. It details start and end dates, products and discounts included and exact details of the promotion. In addition, we have vendors sign to hold the negotiated price for the duration of the promo. We also require that they maintain adequate inventory during the promotional period or provide a substitute item at equal or greater value.

Remember Your Partners

When the promotion ends, let vendors know it was a
success and that you want to do something similar again. Making them feel like they were part of something successful pays dividends down the road.

Bottom line is, don’t be afraid to ask your vendors for deals and specials, they want to grow your sales as much as you do. A successful promotion makes everyone happy and gives you an edge up on your competition. Now go and work that deal!