Product sourcing, what works for you?

[The Bar Keep]

After a year and a half with the same supplier I have become nearly 25% of my suppliers business. Decided to get myself a pay increase today by renegotiating my price. All in all by the time I was done I managed to gain an additional $15,000 per year based on last years orders. That doesn't include growth as this year has so far been 50% above what last year was month to month. How did I get to this point?

#1 I studied the market (eBay at the time, my websites came later) for what would be the best price range to sell products in and make consistent money (a product with steady sales). I determined that products valued at $50-$150 have the best profit ratio per sale.

#2 Looked for a product that would interest me to sell (something you know a bit about or find enjoyable) and also remain competitive. Ended up with leather biker gear.

#3 Looked at several suppliers and finally settled on one that would accommodate retail prices throughout my targeted price range without sacrificing quality.

#4 Before selling I made some test purchases as well as a contact, goto person with the supplier. Phone calls were exchanged and within 2 weeks I was selling the product. I tell ya nothing ever comes easy and for 6 months it was nearly a wash on profit. I gave up on one eBay account and switched to an account that had some feedback but wasn't selling this type of product, did that 1/1/07. Don't know for sure what happened to change things at that point but business was booming and hasn't slowed yet.

#5 Continued those phone conversations along the way to learn of upcoming products and what sells best at what time of the year.

All in all what I found best was the personal relationship I developed with my supplier is what worked for me. I had tried all the free dropshippers and we all know how those work out. Tried some paid ones too, same story. If you want to sell it you need to go out and get after it. If it isn't close to where you live, pick up the phone and start talking, it can be done!!!


Joe - The Bar keep

[2boysandtoys]

Joe - that's super cool and I appreciate ya sharing.  I believe at the end of the day - building relationships is what it's all about.  When I was still in corporate, I managed 3rd party suppliers that had to 'round-out' our custom IT solutions when we did not possess that core competency.

Anyhoo - those that 'responded fast', were 'readily available' and delivered were the ones I went to over and over and over again.  We even developed relationship goals, guidelines, joint profit targets etc. - taught me a ton - ya know?!

My issue...I have interest in everything!   

[chiquita]

Thanks for sharing Joe.
Without a good reliable product source, allowing you to make a profit, well ummm there is no business.

Please continue to share tips and ideas for product sourcing as many sellers get lost in the process and often get caught up with not so good companies.

 

[The Bar Keep]

We even developed relationship goals, guidelines, joint profit targets etc. - taught me a ton - ya know?!

Did that too Erin. Our target in sales from me to the supplier was $100,000 for 07'. I surpased that with ease but it was because of using eBay as a marketing channel that I was able to do that. I will share more later but it is all what i said above and what Erin just said combined with a business plan. BUT!!!!!! You have to be ready for the struggles early on and be preparred to follow it through for at least 6 months. Hours you put in in a day forget about it because if you are serious about it you need to devote you full attention to it and adapt to what the market calls for.

Example:

There was a time where Australia was about 30% of my sales. I would spend nights up to all hours just answering questions to my customers there. Now that country is turn key for me as well as the rest.

Joe - The Bar Keep

[QUILT]

I have yet to find a dependable supplier and I do believe that the word doormat is visually printed on my forehead and everyone can see it but me.