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Finding Vendors

January 7, 2006

By Jerry Osteryoung

Q- I am just starting a small gift shop. In order to compete, I must find a reliable and cost effective supplier. Some of the firms that I have already located have refused to sell to me because they say that I am just too small. I am also concerned about my products and pricing as customers can sometimes buy comparable products cheaper at Wal-Mart. How do I find great suppliers that are reasonably priced?

Providing the unique gifts that your customers want at reasonable prices is fundamental to your business' success. Equally as important is finding vendors that can supply you with needed goods. As you have experienced, large vendors are not often interested in you as a client because it takes just as much effort to sell a $150 order as it does to sell a $10,000 order. Therefore, you really need to look for smaller vendors that are aggressive about wanting to expand and are willing to grow with you.

Like with most things in life, you have to be persistent in your search for vendors. The internet is a great resource. When I did a Google search for "wholesale gift supplies," I came up with 2,500,000 hits. There is obviously an abundance of information available. When working with online vendors, just bear in mind that, while ordering off the internet is great, you need to make sure that the firm you are dealing with is reliable and honest. As a consumer, I have utilized the internet often and have only been burned on a couple of purchases. Test a new firm by starting small. Gradually increase the size of the orders as the firm proves its reliability.

Reading trade magazines is another way to locate potential vendors. Sometimes, the small ads in the back of the magazine are great sources of vendors. Instead of looking for the largest ones, look for the vendors that really seem to cater to your needs.

Find trade magazines in your area by simply calling the reference librarian at your local library. They are always friendly and willing to help (my wife is a retired reference librarian). Also, a neat website is Tradepub.com. This site contains a listing of various trade publications.

I encourage you to query gift shop owners in other cities to find out which vendors have worked out for them. Normally, they are more than willing to share this information once they know that you are not from their area. Gift shop shows are a great place to find shop owners that you can feel comfortable talking to. These shows are also useful for connecting directly with prospective vendors. The following website contains information about upcoming shows in your industry: http://www.onecoast.com/index.asp?pg=shows.

While on this topic, I would offer one final piece of advice. As you negotiate with each vendor, let the Golden Rule be your guide. Deal with them in the manner that you would have them deal with you. I have seen some small business owners try to drive the price down so low that the vendor just refuses to do business with them. A "fair" price should be fair to all involved. Think of your vendors as your partners; you want them to make enough money to give you great service.

Finding great vendors for your business is critical to its success. The internet, trade publications and gift shop shows are three ways that you can locate those vendors that will meet your business' needs.

Good luck!