Working With Wholesale Suppliers For Success
One of the keys to building a successful and profitable business is to have good suppliers and good relationships with your suppliers. This is especially true for independent party plan businesses.
You want good suppliers of quality products at excellent wholesale prices and to keep them. This might sound very simple but it isn’t. Human nature gets in the way and we do things that stuffs things up. It is only later that we find out what really went wrong and it is often too late to fix things.
So I got talking with some wholesale supplier friends and party plan friends to find out what makes for good relationships and what harms relationships.
Some party plan businesses get their products at good wholesale prices and then go out and undercut with small margins the retail shops at the parties. This may sound like a good idea but if you set your business up to be competing on price then you’re choosing some nasty limitations for yourself. Without enough cushion from your profit margins how are you going to expand – by doing twice as much work to bring in half of what you need? What are you in business for? To create wealth or to give yourself a very busy and hectic job?
Wholesalers also don’t like selling to a business that is undercutting their other very valuable shop customers. So they’ll just stop supplying the business that is causing harm.
Many wholesale businesses aren’t interested in carrying stock that might or might not be ordered by a party plan business. They want their stock bought and carried by the customer.
So when they have a customer who places a initial small order just for samples then comes back 5 weeks later saying I want x of this, z of that, y of this etc and then get upset when items are out of stock, (customers are going to be very disappointed, bookings are going to dry up) the wholesaler thinks they are too much trouble for too little reward and stop doing business with them. Many wholesalers who have had these negative (and often nasty) experiences simply won’t do business with any party plan businesses again.
This is why carrying stock and selling it at a decent price makes for a more successful and profitable party plan business. Yes, it costs more to setup but there are greater rewards for yourself. It is much easier to create wealth when you get all of the profits rather than just 10 – 20% of the profits.
When you’re carrying the stock you can also setup other distribution channels for selling them such as a website and at expos.