Types Of Suppliers Know your suppliers and how they can help your business
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Suppliers are essential to any retail business. Depending onyour inventory selection, you may need a few or dozens. Sometimessuppliers will contact you through their sales representatives, butmore often, particularly when you're starting out, you'llneed to locate them yourself--either at trade shows, wholesaleshowrooms and conventions, or through buyers directories, industrycontacts, the Business-to-Business Yellow Pages and tradejournals.
Suppliers can be divided into four general categories.
1. Manufacturers: Most retailers buy through companysalespeople or independent representatives who handle the wares ofseveral different companies. Prices from these sources are usuallylowest, unless the retailer's location makes shipping freightcostly.
2. Distributors: Also known as wholesalers, brokers orjobbers, distributors buy in quantity from several manufacturersand warehouse the goods for sale to retailers. Although theirprices are higher than a manufacturer's, they can supplyretailers with small orders from a variety of manufacturers. (Somemanufacturers refuse to fill small orders.) A lower freight billand quick delivery time from a nearby distributor often compensatesfor the higher per-item cost.
3. Independent craftspeople: Exclusive distribution ofunique creations is frequently offered by independent craftspeople,who sell through reps or at trade shows.
4. Import sources: Many retailers buy foreign goods froma domestic importer, who operates much like a domestic wholesaler.Or, depending on your familiarity with overseas sources, you maywant to travel abroad to buy goods.
Excerpted from Start Your Own Business: The Only Start-UpBook You'll Ever Need, by Rieva Lesonsky and the Staff ofEntrepreneur Magazine, © 1998 Entrepreneur Press
