Suppliers are essential to any retail business. Depending on
your inventory selection, you may need a few or dozens. Sometimes
suppliers will contact you through their sales representatives, but
more often, particularly when you're starting out, you'll
need to locate them yourself--either at trade shows, wholesale
showrooms and conventions, or through buyers directories, industry
contacts, the Business-to-Business Yellow Pages and trade
journals.
Suppliers can be divided into four general categories.
1. Manufacturers: Most retailers buy through company
salespeople or independent representatives who handle the wares of
several different companies. Prices from these sources are usually
lowest, unless the retailer's location makes shipping freight
costly.
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2. Distributors: Also known as wholesalers, brokers or
jobbers, distributors buy in quantity from several manufacturers
and warehouse the goods for sale to retailers. Although their
prices are higher than a manufacturer's, they can supply
retailers with small orders from a variety of manufacturers. (Some
manufacturers refuse to fill small orders.) A lower freight bill
and quick delivery time from a nearby distributor often compensates
for the higher per-item cost.
3. Independent craftspeople: Exclusive distribution of
unique creations is frequently offered by independent craftspeople,
who sell through reps or at trade shows.
4. Import sources: Many retailers buy foreign goods from
a domestic importer, who operates much like a domestic wholesaler.
Or, depending on your familiarity with overseas sources, you may
want to travel abroad to buy goods.
Excerpted from Start Your Own Business: The Only Start-Up
Book You'll Ever Need, by Rieva Lesonsky and the Staff of
Entrepreneur Magazine, © 1998 Entrepreneur Press