Home – New Forums Logistics Contacting Suppliers/Wholesalers

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  • #976158
    amdftw69
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    Hi,

    I am in the process of starting up an online shop from home. I have got the business name, abn, telecomms ect all researched and planned out. Im at the point now to start registering it all.

    I have found all the wholesalers/distributors relevant to me. Now the online shop im opening has a fair few competitors already (my very low overheads/expenses should give me my edge) but are at a point where i would like to get an idea of what sort of profit per item can be made. Because there are a lot of competitors already, i dont think there would be any distributors that should turn be down for business or i would have thought i would be rang accross a competitor already with some ‘exclusive’ products.

    Should I try to contact the distributors before i register the business name/abn ($)? Im assuming its not common practise to give out price lists to someone like myself? What would be your advice and do you have a list of questions i should ask

    A few months ago before i have more of this planned out a bit more serioulsy i did email one, which i asked for a price list but he asked for more ‘information’ before we could talk futher (abn, domain name ect.)

    Thanks for any help

    #1079159
    King
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    not sure why you have ($) beside business registration and ADN – they will be the least of your costs.

    Many wholesalers will not blindly give out prices (we don’t) as it may be competitors doing research. Also they may have tiered levels based on volume of orders.

    I would get all he background stuff done first – including website so you are looking legitimate – then start to call some suppliers. It may take a few months till you get as many as you want (many won’t talk till you till the new year now anyway as they deal with Christmas rushes – they they will take a holiday…)

    #1079160
    amdftw69
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    sorry what i was trying to get at was if i could get a price list from some of the wholesalers and it showed they would only sell to me the same price as competitors advertise or more, it would not be worthwile me paying to register business/domains/hosting/telecoms ect.

    if i took your advice, got it all set up and then made contact, what questions should i be asking, and any questions i should be prepared for they will most probably ask me.

    thanks

    #1079161
    King
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    Well to set up as a business is only a few hundred bucks, so that aspect should not be be viewed as a barrier.

    I am sure wholesalers will supply you more cheaply that you competitors sell retail – the issue will be if they will supply you – or even talk to you – at all unless you have an ‘established’ business, even if you are not yet trading.

    The price they sell to you MAY be influenced by the volume you order and many will have minimum order quantities. Plus initially you will probably need to pay up front rather than on account till you have some purchase history with them.

    You may be lucky and find some who will discuss details with you before you set up a business and this is great if it happens.

    One aspect I would be asking about is drop shipping. Some will, some won’t. DS is preferable to having unsold stock that you cannot move in 12 months time.

    #1079162
    amdftw69
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    ok great thanks

    do you think it would be worthwhile ringing before everything is registered and ask the question “once i have everything set up can you see any problems on why I will not be able to buy from you”

    #1079163
    King
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    There is no harm in trying.

    #1079164
    AngelaGirl
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    In addition to the price list (check whether prices are quoted ex GST) you may want to ask for a copy of their terms and conditions to help you decide whether you actually want to purchase from them. Many suppliers become less attractive once you find out:

    minimum order quantity and/or frequency
    payment terms – up-front payment vs on account; also are there extra fees for paying by credit card?
    delivery info – is it free delivery after meeting a particular order value; or is it flat rate delivery; or is it based on order volume and weight (this can totally obliterate your profit margin if for example they use AusPost!); who do they use for delivery? can you use you use your own courier? How long does delivery typically take after placing an order?
    returns policy – Under what circumstances do they accept returns? What happens with stock that’s received damaged? Is there a time limit for returns?

    Hope this helps.

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