How to buy from company and individuals
How to Buy Directly from a Company
Purchasing products directly from a manufacturer or wholesale distributor is easy and online convenient, but there are certain state laws, import laws and distributor policies that you must adhere to.
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.
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.
Connect with suppliers. Top sellers don’t just get the best wholesale prices overnight. 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 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 wrote information tackling about you and your business. This is a better idea since non-native speakers find it easier to read than talk.
Prepare a few things. You need money because buying from manufacturers entails 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.
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.
Be mindful of the costs and benefits of using an import agent to buy wholesale from China vs finding and building a relationship with the supplier on your own. An import agent will handle the hassles of finding a supplier and working with them for you on a commission basis, but this leaves you with less control over the import process and no direct communication with the supplier. This may be an issue when you are working to develop new products or change existing designs.
HOW TO BUY WHOLESALE
There are opportunities to buy almost anything at wholesale prices, whether you want to buy everyday items or specific products for resale. Once you begin your search, you will see that opportunities to find wholesale buys exist almost everywhere. The process to get started is easy and your contact list of wholesalers will grow quickly.
2Decide how much you want to buy. In wholesale, the volume is absolutely important. That’s because the more you agree to buy wholesale, the lower the unit price. Business in wholesale is often referred to as “volume-centric.”
Balance your supply and fiscal needs with inventory constraints. In other words, it’s great that you got a deal on 2,000 laptop computers, but where are you safely going to store them while your orders trickle in?
3 Find and research your wholesale suppliers. There are plenty of wholesale suppliers if you know where to look. Here are a few of the most popular places people seek wholesale deals:
Do a thorough internet search. Search first by the type of product you’re looking for,
4Network to find deals. Talk with other people who have successfully bought wholesale products and made deals to grow your list of contacts. Unless they view you as direct competition, they will often share their associates’ information.
5Investigate joining professional groups offering wholesale prices. These groups may be listed in industry publications or websites or may be affiliated with the company where you work. Such organizations often extend a discount to members.
You may think that paying for access is a rough transaction, but the membership fee is worth it when you weigh that amount against what you gain
6Buy wholesale lists at your own risk. Wholesale lists are exactly what they sound like — lists of “trusted” suppliers and distributors you can use, for a fee. These lists sound nice in theory, until you realize that they are sometimes old and often outdated. Try to find your first leads without paying for them.
7Start off with a sample unit. Instead of trying to hawk 1,000 units of something, try selling 20 units of the same thing first. Lots of wholesale suppliers will let you buy sample or test units at still-discounted prices. This gives you the leeway to try to sell the units on your own, in real conditions. If the items don’t sell, you’ve saved yourself from a huge disaster. If they sell like hotcakes, it’ll be easy to re-up, and you can be confident in your ability to stay out of the red.
8Don’t be afraid to ask for perks. Perks make the world go around, and the wholesale world is no different. Ask for an opening discount on any order you potentially make with wholesale suppliers; fierce markets will cause suppliers to compete for your business, making an opening order discount a nice show of appreciation, and a savvy business move to boot.
Sign up for email subscriptions, where discount and close-out items may be mentioned. Be sure to ask, however, why these items are on discount or being discontinued. If they’re being discontinued because they simply don’t sell, it may not be a great move to buy a ton of units.
9Pay attention to how you’ll ship your items. Unless you have a freight business on top of your burgeoning wholesale business, you’re going to need to find a way to ship the units over to your inventory. When you do, stick with trusted names in the freight business; you’ll find it’s expedient to pay a few extra bucks for a trustworthy service.
10Finally, do your due diligence before you finalize any order. Clarify the return policy, solidify processing time, and take advantage of any discounts. Then, don’t be afraid to negotiate pricing terms, especially if you find a better deal elsewhere. Know when to expect the delivery. If you’re ordering units in excess of $50,000, consider consulting a lawyer to review the contract before signing it and making it final.
Use a separate bank account and credit card for the wholesale purchases if you are reselling items as a vendor.
Know the retail value of every item you want to buy before purchase. This way you will not pay too much thinking the price was wholesale. Check online, if necessary, by searching for the product in order to get several price comparisons.
HOW TO VERIFY YOUR WHOLESALE OR RETAIL SUPPLIER
Many overstocks, liquidation, and surplus stock sales are happening generally in minutes. The total price of the wholesale liquidated stock is here usually the most important factor to make up your mind. You’ll receive an amazing stock offer and you have to act really fast as there are potentially tens of buyers hungry after this wholesale bargain deal.
But how do you know that your supplier is really genuine and he is what he really says he is? How do you do a security check or verify your wholesale supplier. This could be a tricky and frustrating task, but here are some useful tips to get you started.
1)Ask for the VAT or a copy of Tax ID, Company Registration number and full company details.
Google could be a good tool to research who’re you’re dealing with. With the individuals this could get a little tricky as there are not many options, but i suggest you ask for the bank details, also relevant to verifying a company.
◦ In US you can use the website bbb.org ( Better Business Bureau ), try to find you company there. Equivalent of this in UK could be oft.gov.uk Office of Fair Trading.
Try to make a search for you company there, see if anything pops up. You can also try and search for companies and individuals on websites like ripoffreport.com
2)Use these useful tips for dealing with and-and verifying Chinese companies or “businesses” however these could be very relevant to verifying any company.
Some Chinese companies – even some paid members of trade websites – are scammers. Your business is not legally protected by Chinese authorities if
you are dealing with an illegal company. Buyers need to verify potential suppliers first.
Unfortunately, while there are some Chinese websites that can help provide company verification, there is little support for us English speakers. So, here are some tips to help you be sure you are dealing with a valid supplier.
3)Contact Information. Most of the time, scammers do not provide correct business contact information. They submit a false address, telephone number. ALL buyers should make personal contact with suppliers before concluding a sale.
4)Verify the Company. Every legal company in China needs to be registered with Chinese government authorities at the Bureau of Industry & Commerce (BIC). Once approved, each company is provided with a unique company number. Be sure to get this number from suppliers – if they cannot provide one, walk away. Once you have the number, check with the local BIC administration office to verify company information. (NOTE: You will likely need to have someone Chinese make the call, as English is not supported).
In China, all companies that wish to import and export must apply for and obtain a Certificate of Import & Export from Ministry of Commerce and its authorized local agencies in China. This must be done after a company has registered at their local BIC. In addition, trade companies have to register with Chinese Customs House and its regional branches before conducting formal business with international businesses. Buyers should ask suppliers for their company number from BIC, as well as a copy of their Certificate of Import & Export.
5)Payment Terms. Scammers never accept Letter of Credit (LC) payments. The fraudsters of the world prefer Western Union, TT and PayPal payments – as these cannot be traced. Buyers making a large purchase should definitely pay be LC. For sample orders and smaller shipments, consider using an escrow service (like Escrow.com).
6)Check Customer Referrals. Professional suppliers understand the value and power of customer referrals. Before finalizing an order, ask the supplier to provide names and contact information for some of their satisfied buyers. You may wish to start by asking if they have shipped product to your country before. If they say yes, get customer referrals there. If not, ask what other countries they have sold to and get info for some of those customers.
7)Watch out for Unbelievable Prices. Part of the lure of scammers is to offer products at truly unbeatable prices. But, the reason they can offer such low prices is that you will never get the product – so who cares what the sales price is? Consider this: If the deal sounds too good to be true, it probably is.
8)Check the authenticity of Branded Products. China is famous for selling copied versions of branded products, such as watches, electronics, shoes, handbags, golf clubs and more. At the same time, there are a number of legitimate Chinese producers of branded products, that sell surplus quantities illegally. Buyers should note that while a Chinese company may provide you with a certificate indicating they have the right to produce the branded item, this certainly does NOT authorize them to resell those items. Check the wording carefully.
Chinese suppliers provide buyers with real opportunities for cost savings. Just remember that without conducting appropriate due diligence, you are going into the deal blind and putting yourself at risk. Like in the rest of the world, most businesses are professional. With a little research, buyers can trade confidently and develop valuable business relationships.
article from WikiHow