5 Essential Tips that will help you create the best product sourcing plan for your business
Revenue is the heart of any business. It is what feeds a company’s growth and direction. It is no surprise, that many sales teams pose the most important question to themselves – what is the best product to sell in our marketplace? How can we improve our product sourcing services?
The truth is that there is no easy answer to this question. Since multiple factors affect this decision, starting from the demographics and location to the timing, the competition and the sellers. Product sourcing is a key function and its process differs for every organisation and every industry.
To explain it simply, product sourcing is the process of identifying reliable vendors from whom an organisation can purchase quality products at desired margins. Though it sounds like a simple task, it requires a lot of homework and constant attention, so you can give your customers a positive experience.
With this as the key, let’s take a look at 5 tips to develop the best product sourcing strategy for any business.
Don’t stop sourcing
While at some point it may feel like the business is doing great with the product mix that you have, but that is not a permanent condition. One has to constantly look out for new products to keep the consumers interested and for the business to remain profitable.
Businesses that want to be successful, work persistently to recognise and build on new channels to sell and source products. Updating your product mix will also keep the competition on its toes, making them work harder to copy your business model.
Market research is the key
It is extremely essential to analyse the demand for the product before you start sourcing it. Simply looking at what you can afford to buy and what the suppliers are offering, cannot give you a complete picture. Only through research can you discern if your target audience is going to accept the product you hope to the source, and at what price point will it appeal to them.
Mimic a successful business model
Everyone wants to be unique and profitable in the products that they offer. But there no point in reinventing the wheel when it comes to successful business models. There are numerous product sourcing models which that can be emulated. Though your competitors’ business model may not work the same for you, it can be tweaked and adapted to a different category and product for you.
Visit trade shows
Wholesale is a business best conducted off-line. Once you start seeing signs of growth, it is advisable to consider visiting trade shows. This will help you meet manufacturers and establish personal relationships with them; which will prove essential when it comes to future product sourcing.
Find local manufacturers
The competition for the price decides a lot of battles. Margins get smaller when a product passes more countries. The best way to handle this is to find a manufacturer closer to home. This will also eliminate a lot of the warehousing and staffing expenses and make handling large quantities easier.
Product sourcing as a process has changed considerably with the advent of the internet. However, personal relationships with a supplier remain as important, as they were 20 years ago. There are a lot of ways to achieve the optimal results, but unfortunately, there is no one formula that works for all. It is up to you to find out which product sourcing services work best for your business.