Arizona Hispanic Chamber of Commerce

Finding the Right Supplier

Q: We would like to expand our business into some new areas that, though we are interested in them, we have no experience with them. The worrisome part is that we have no established links with suppliers as we do with our current business. Can you assist?

Andrea, CA

A: First let me say that it is vital to not underestimate the importance of finding the right supplier — it indeed can be the difference between success and failure.

Consider my friend John. John owns a very successful antique shop in California. In fact, it is so successful that John works only about six hours a day, four days a week, and he still makes a six-figure income. His store is usually busy and it is not hard to see why. It is full of fascinating, old knick-knacks, doodads, odds and ends, and other stuff that he buys from a variety of sources: Dealers, antique shows, garage sales, classified ads, and estate sales are the most common.

When asked what the secret of his success is, John tells me, "It's all in the buying." John loves shopping for things to put in his shop, but won't buy anything, no matter how much he likes it, unless he can get it for the right price. He knows that if he pays too much, no matter how interesting the item is, it will take up valuable space in his store; space that could be used by products that sell. He also knows that if he can get the right item for the right price, selling it won't be a problem. John is convinced that the reason for his success is not how well he sells, but how smart he buys.

It's all in the buying is as sound a small business principle as you will hear. So as you start to make the decisions that will build your brand, don't forget that the name of the game is to buy low and sell high, and that the key to that is finding the right suppliers who can help you buy low.

Here are your best bets:

Referrals: Find similar businesses in neighboring cities and speak with them. They can tell you who their suppliers are and give you the name of the suppliers' representatives. Call the reps and have them come to your store to show you their line.
Trade Shows: Trade shows are maybe the best place to find products and suppliers for your new endeavor. Trade shows are presented by people in the business for people in the business. By attending, you will make invaluable contacts, see the latest trends, meet potential suppliers, learn the lingo, and essentially get a crash course in your new industry. Wander the isles, find the products you like, and speak with the rep in each booth.
Trade Magazines: Pick up a copy of the trade magazine(s) for your new business and look at the ads. They want to sell to you. Call the companies whose products you like, and again, get them to send out a rep to meet with you.
Trade Associations: Trade association usually have a list of contacts who sell what you want to buy.
Go Online: Go to the online version of the Thomas Register and type in the products you are looking for — www.thomasregister.com.
Go to the Source: If you know what product you want and who makes it, then go online and get the company's contact information. Call them up and ask for the sales department. Explain who you are, what you are doing, and that you would like to meet with the rep in your area.

Remember, it's all in the buying.

Today's tip: Small businesses in the Gulf Coast that need assistance due to Hurricane Katrina should be sure to check out the Small Business Administration Disaster Loan Assistance Program: http://www.sba.gov/disaster_recov/loaninfo/dloanassit.html