Negotiating with wholesalers is real business success

Wholesale business involves two or more parties who wish to sell and transfer large inventory of goods from one place to another for resale purposes.

Negotiating with wholesalers is a necessity in this business not just for the prices but for many other things like contract terms, quantity, credit terms, supply assurance, delivery schedule, shipping terms and Warranty. Negotiations happen before the parties reach an understanding, or when ever there is a difference of opinion.

In the wholesale industry, the profit margin is directly related to your purchase price and the terms negotiated with your supplier. Your negotiating skills, your willingness to persuade the wholesaler, and your influencing power on the negotiating table plays an important role in fixing prices and other terms.

It is normal human tendency to try to influence the contract terms to their benefit only and tilt the scales on their side. While negotiating with wholesalers, remember that both the parties will involve trained sales people who are paid to get the best leverage for their organization.

Positive negotiations in wholesale business should try to reach a collective advantage which results in a win-win situation for both the parties.

Prepare for the negotiations:

Before you reach the stage of negotiations, you should arm yourselves with all the required data, finish all queries about the product and get competitive quotations.

Scout for all the best options before deciding on one country and a wholesaler. Clear knowledge of your needs, future trends, ancillary products and services needed and organizational priorities are some helpful items to keep ready before the actual negotiations.

You should know what to bargain for and what you can sacrifice. Getting a better price is not just the goal, so be prepared for all the items in your contract.

Resources for negotiation:

Use the best available resources to prepare before you start the negotiations. Forums like WholesaleForum.com (www.wholesaleforum.com), Alibaba.com (www.alibaba.com) and The Wholesale Forums (www.thewholesaleforums.co.uk) help you to get ample data regarding suppliers, pricing, government procedures, shipment methods, drop ship options and wholesale trends.

You can post your questions in bulletin boards, and see what others have felt and experienced during their wholesale negotiations.

Use your trump cards at the right moment:

Extra orders, combining two shipments, future potential, referencing another buyer are all some of the trump cards that you can carry up your sleeve while negotiating with wholesalers.

Most wholesalers will be happy if you pool your orders together. Being a good buyer, paying promptly, maintaining professionalism, honoring the contract every time are some more things that help you while negotiating terms.

Most businesses honor ethics today. If you are a pain in the butt kind of person, they may not be motivated to negotiate with you even if your volumes are very high.

Know in advance what else you can offer the seller, and use them at the right moments.

Fair compromise in negotiations:

Like any other business, your wholesaler needs to make enough profit to stay afloat, so never try to squeeze the impossible out from your supplier. In a wholesale trade, you are collaborating with your vendors, and together you both succeed.

Its? not a matter of conquest where you kill your own suppliers just to make the extra profit for yourself. A good deal always drives towards a fair compromise finding a mid-path in negotiating with wholesalers.

Know when to break a deal:

Just like closing out a successful deal, you should also know when to walk away from the negotiations. If you are not satisfied with the terms, you can either break the deal or ask for time to rethink and come back.

The power of negotiations lie in the fact that if you are not satisfied, you are going to walk away. If you show your despair in what the vendor offers, then the vendor gets into the driving seat of the negotiations. Never let a salesman pressure you into accepting things that you are not in agreement with.

Long Term relationships:

As you continue in the wholesale trade, you will appreciate the importance of trust and relationship. Rather than the actual negotiations, it is more important for the Vendor and buyer to be on the same page.

It is not a battle, and there are no conquests. Each negotiations should only increase the trust factor between the parties. Driving down a hard negotiation may only win you in short term, but a trustworthy relationship with your suppliers works very well in long term.

Grievance and Disputes:

If your negotiations break down, or if the vendor disregards the agreed contract, you may need to contact your country?s Trade councils.

Some trade councils are: ??USITC ? United States International Trade Commission? (www.usitc.gov) or the Consumer Protection councils of the vendor?s country like ?The China Consumer Council? (www.consumer.org.hk) and ?Consumer Protection Commission of China? (www.cpc.gov.tw/English/Commission.asp).

Filing a complaint and pursuing legal actions may sometimes be required if negotiations will not help at the end.

Ultimately, negotiating with wholesalers can be an elaborate process, but remember that the pain taken at the beginning pays off at the end.

A properly negotiated contract is good for both the supplier and the vendor. Learn to respect the supplier and try to build their trust.

Most wholesalers appreciate a good consumer and their long standing relationship.
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Here are some other Wholesale Sourcing sites that I have found for you to browse. Thanks for visiting Sourcing-3.com.

successful business negotiating
successful business negotiating

Tags: business negotiating, Negotiating with Wholesalers, successful business negotiating

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