We kicked off the series “How to Source Products For Your SME” with Part 1, where we explained why it is important to understand the industry where you want to sell your products, as well as the product sourcing process as a whole. Then, in Part 2, we will discuss an important segment – finding manufacturers for the product that you want to source. Today, in Part 3, we will talk about the aspects that you need to consider before you request a quote from the manufacturer.
So, you found the right manufacturer for the product that you want to source and you have his contact information. The next thing that you need to is to request a quote from the manufacturer – that is if your initial talk with the manufacturer went well.
But, first, you need to be aware of the quantity that you want to source. As a business owner, you may have to negotiate the quote. That’s why you need to plan what you’re going to say too because, without a negotiation plan, the deal can break down before you know it. There are important aspects that you need to consider before you request a quote from the manufacturer.
The minimum quantity and sample price
You need to have a minimum quantity of products that you want to order. This can be any amount that is manageable for your business. The minimum quantity varies and it depends mostly on your budget and the manufacturer’s pricing. That’s why it matters that you have your minimum product quantity in mind before you request the quote.
Before you continue the collaboration with the manufacturer, you will want to receive some samples of the product/s. The price of a sample rests on the actual product and the product supplier. Some of the manufacturers will be happy to send you a free sample too.
Products cost and turnaround time
One of the most important aspects of a successful product sourcing process is the cost of the products. Here, you will want to know if the manufacturer offers different prices for larger quantities of the product. In other words, does the manufacturer have a pricing system?
Furthermore, you need to be aware of the amount of time that the manufacturer will spend to produce your desired quantity. Time is a crucial aspect of every business process, so it plays a massive role in the product sourcing decision and choice of the product manufacturer.
Minimum orders request
When you request a quote, the manufacturer can also request that you need to agree to purchase a minimum quantity of products in order for the collaboration to start. But why do manufacturers impose a minimum quantity in order to proceed with the product sourcing process? Perhaps there’s a lot of production process involved and they don’t want to bother over a smaller amount. Or, the manufacturer wants to work with big buyers only.
If you don’t like the minimum that the manufacturer imposed, you can start the negotiations process. A compromise is always a possibility in the product sourcing segment.
To have progressive growth, arguably you need a great product. However, for a great product, you need a stable and reliable supplier. Making a mistake at this point can be devastating for your business and reputation.
With BizzBee Product Sourcing, you give us information about the product you want to source. And we will provide you with information of the right manufacturer. In the process, we will establish communication with many manufacturers. We also compare them based on several criteria and facilitate the selection process. You will significantly reduce the complexity and communication overhead from the process as a result.
Danco is a serial entrepreneur, founder and CEO of BizzBee Solutions, proud father of a 3-year-old and a burger enthusiast. He is inspired by growth and goes above and beyond to make it possible – whether it comes to his 300+ clients or his people. Eager to learn more? Follow Danco on LinkedIn and Facebook.