Whatever type of business you are in, there will always be competitors. As a business owner, you’ll definitely be happier when your business is on top of others. But you’re also worried when others are getting their way up to your position.
Competitors employ different strategies in business. When you notice a competitor selling the same items at prices less expensive than yours, your competitor will definitely be on top of every customer’s list. This has been made possible because your competitor has obtained a good wholesale price. Through this, both of the competitor’s sales and profits will increase.
Of course, if you haven’t done this, you will really be envious of your competitor. But worry no more. Here are some tips to get in the same position as your competitors right now by selling the same items at prices lower than theirs:
- Massive orders. If you’re a new seller, making massive orders may not seem like an advantage at your end. Large investments are needed which might make you hesitant. However, if you can do it, then give it a try. Doing so will really increase your sales since taking on massive orders is actually cheaper. This should be your goal. When you say massive orders, you will usually be buying in bulk costing over $1,000. Buying single items which sell at approximately $100 is not good at all. Your $1,000 is not actually a bulk order. Plus, you don’t even get the best wholesale price at all. But if you can get an item at $4 each, then $1,000 is already worth it to get a good arrangement.
- Connection. Top sellers don’t just get the best wholesale prices over night. Instead, they work hard for it. Aside from obtaining massive orders, top sellers also connect with their suppliers. First time sellers should really do this as a good relationship between the seller and supplier is really an important element in any business. As a new seller, it’s best that you call them frequently. Discuss about new products and your future plans. By doing so, they can see that you really are interested in building and upholding a relationship with them, whether at present or in the future.
No matter how small or meager the amount is, nearly all suppliers still give high regard for your business. 99% of online retailers started out like these. They started out with a smaller amount and eventually got bigger and bigger in business while retaining their loyal customers. In turn, suppliers will also try their best to know you and keep you happy as much as possible so you will keep them as your suppliers in the future. As much as possible, both you and your suppliers have to be able to rely on each other. Whatever actions they show you, you must take these into consideration. When they give time for you, make the most of it by telling about yourself, you family and your future plans for your business. These actions and other means to get to know each other is actually very important so both you and your suppliers will uphold a good relationship in the near future.
- Out of the ordinary treatment for overseas suppliers. In dealing with overseas suppliers, language can be your hindrance from getting acquainted and making friends with them. However, you should never give up. Instead, you should try even harder to make friends with them by giving an out of the ordinary treatment. You could send your supplier with local treats that are unique only to your country. Include also written information tackling about you and your business. This is a better idea since non-native speakers find it easier to read than talk.
- Dig deeper to the core. As much as possible, avoid dealing with middle men or wholesalers. Instead, you need to go deeper and deal directly with the manufacturers. By doing so, you’ll surely get the best prices. However, you need to prepare a few things. You need money because buying from manufacturers entail buying in huge bulk or approximately 1,000 units per order. Since you’ll be taking on massive orders, you also have to prepare a storage unit, transportation and an arranged shipment as well.
In approaching a supplier, you have to negotiate. But before you negotiate, you must know first the best possible price that you have to pay the manufacturer. You must remember to give a price that still makes your business profitable.
Here’s one important tip for negotiations. If you have a business partner, let him do the negotiations for you. It’s better to have someone else negotiate for getting the best price instead of the person who’s trying to build a relationship with the manufacturer. On the other hand, manufacturers also have an employee tasked to do this job for them.
So, these are the tips to getting the best possible prices. Keep these in mind and start taking the advantage of the lowest prices just like your competitors.