Choosing and negotiating with suppliers: prices, lead times and credit
Your suppliers largely decide your margin and your stock-outs. Choosing and tracking them well is one of a shop’s most powerful levers.
Compare more than price
Purchase price matters, but so do quality, delivery time, reliability and flexibility on quantities. A slightly dearer supplier who is always on time can earn you more than a cheap one who leaves you out of stock.
Have at least two suppliers for key products
Depending on a single supplier is risky: a shortage or a sudden rise corners you. With two sources, you can compare, negotiate and switch if there is a problem.
Negotiate with a method
- Prepare your volumes: buying more at once gives weight.
- Ask for tiered quantity prices.
- Negotiate payment terms, not only price.
- Show your regularity: a reliable customer is one they want to keep.
Record every delivery
On every receipt, check quantities and prices, and record purchase price and supplier. You can compare over time and spot a hidden rise.
Track purchases with Kaislo
Kaislo records goods received with quantity, purchase price and supplier, updates stock and recalculates your margin. The Excel report lists expenses and stock value.
Sales, stock, customer credit and evening accounts in one place, on phone or computer. 30-day free trial.
Choosing and negotiating with suppliers: prices, lead times and credit
How many suppliers should you have?
At least two for your most important products, so you can compare and not depend on one.
How do you get a better price?
By grouping your purchases, asking for quantity prices and showing your payment regularity.