Keeping business costs low : Suppliers

In the business world, the level of our costs can be our sales generator or loss contributor. Sure, to make sales, we make sure our products are of good quality and worthy of the market's attention. But, there is no point of getting market attention if the market does not want to pay - and of course, no one would want to pay for goods on unreasonable prices. So, to make sure our goods are affordable for the wide market, we need to make sure our costs are low. Selling goods cheap would not be wise if our costs were high. Hence, before we decide to sell, let's try and find ways to keep our costs as low as possible. Supplier wise, I have some tips to share - shared by my dad and my sister who shares a perfume business.

Compare suppliers

It may seem time consuming but believe me - it's worth it! Suppliers come in many shapes and sizes - what you'd want is one that's best in quality AND price, regardless of their size. You can get a cheap supplier to give a low-quality good. Would that be a good idea, though? NO! There's no point getting a cheap product if it's just going to make your customers hate you, which is why it's important to look for quality AND low price. Only then will it be a bargain to you and your customers.

For example, let's compare Amazon to, I don't know, some random person selling iPhone 4's. Which one 

would you prefer?

Anonymous seller
Price: $550.00

 

Imagine if you saw these two ads. Which one would you want to pick? Surely, the Anonymous seller seems to offer a better deal? Think again - although their price varies by quite a lot, the anonymous' is not specific. Amazon's states clearly 'Apple iPhone 4 Black Smartphone 32GB..'. If you don't believe me, click on it and you'll see. Anonymous on the other hand, does not even have a link! I guess that's what you get when it's entirely made up. My point is, looking for the best offer is essential, but making sure the offer is not 'too good to be true' is also important. Otherwise, you might find your money wasted on some cheap garbage.

Stay updated with suppliers' promotional sales

When you've got your list of suppliers, make sure you keep yourself updated with what they offer. Some suppliers like promoting stuff at random times that, if you miss it - you're in a big loss. I have learnt this from my sister's business and my dad's advice. So, whatever you do - do it with style (random word) and keep on updating yourself with your current costs and ways to improve it.

PS: When you're comparing your suppliers, don't worry too much about comparing millions of suppliers. Five or ten would be enough. Oops, make that three to six. You won't want to spend more time searching than you do selling now, do you?

Update 31/05/11: When comparing the goods by suppliers, look at its consumer reviews - thanks to Shahrin for this.