One of the hallmarks of a successful entrepreneur is a deep understanding of their supply chain. Ask any famous entrepreneur with several businesses under their belt and they’ll tell you one thing about supply networks: it’s important to get to know them. It doesn’t matter if your supply chain consists of a grocery store down the road or an international supplier based in China, you need to build relationships with them in order to gain the upper hand on your competition.
There are several reasons as to why this is important. Follow these tips on the importance of networking if you want to create a successful business.
Networking at trade events
One of the easiest ways to network with suppliers is to attend trade shows and events. Suppliers will generally try to network with different businesses in order to find new clients. However, it’s always a good idea to speak with them and have a brief and friendly conversation. This is so you can size up what the supplier can offer you in terms of products and services, or if they offer priority or VIP services for companies that are willing to deal with them on a regular basis. By networking with these suppliers, you’ll gain a valuable business ally that will help you for many years to come.
Negotiating better deals
Another fantastic reason to network with suppliers is to haggle. Many large orders come with deals because of the bulk buy, and as a valued customer you’ll typically receive a discount. However, it’s important not to push your luck with negotiations. Although it can sometimes be difficult to gauge the value of something if you’re looking into a large bulk buy, you should never try to go lower than what seems fair or else it could ruin the relationship you’ve built up with the supplier.
Notice of new products
If your business requires lots of small components, then you’ll likely be looking into a business such as PowerJackMotion to supply you with everything from actuators to electric motors. In an industry with so many part numbers and small devices, it’s important to be notified when products are back in stock or new products are introduced to the lineup that could either improve your current products or pave the way for something new.
If you network with a single supplier, then there’s almost no competition for them. However, if you speak with multiple suppliers and always haggle or negotiate to get the best deal, then not only are you actively saving money, you’re also creating competition among the suppliers. This will help drive prices down so that they can remain competitive with each other, thus saving you a lot of money and giving you fantastic deals.
As you can see, networking with your suppliers is incredibly important and it goes without saying that it’s something you should always be focusing on regardless of your current status within your industry. Remember to network with your suppliers and you’ll find your business is easier to run and far more productive.