The first rule of negotiating is, you should always try to do it. Don’t merely accept the initial price dropship offer you – ask if it’s negotiable. These suppliers are companies, and are used to the question, so you’re not going to upset anyone. If the price for your drop ship products isn’t open for negotiation, they soon let you know; however, if you don’t ask, you’ll never know.
When you’ve found a dropshipping supplier which is ready to negotiate, you need to ensure you happen to be professional, and deal with them in a business-like manner. Put forward your case why you think they need to provide you with a better deal, explain how much business you might bring them if you can get the right price. Of course this is much easier to do once you’re established, and you shouldn’t lie to obtain a better deal, but you should give the supplier a reason to exhibit flexibility.
Order larger quantities
Find out about a price reduction for ordering your drop ship products in larger quantities. One of the benefits of using dropshippers is they don’t normally have the absolute minimum order, and you also only need to pay them once you’ve sold and item, but bulk ordering up front might get you a better deal. You can ask them to hold to your stock and ship it as being you sell it off. Alternatively, have it all brought to you, and ship it yourself as you sell it – you need to pay lower shipping fees by doing this also.
Don’t just focus on the price
When negotiating, don’t just focus on the value of your Drop Ship Products. There are other areas of the deal that the dropshipping supplier might be more flexible on, which could still help you. For example, they might extend your payment terms which means you just pay after the month, as opposed to every order, or they may offer faster shipping for the customers. Getting a reduced price for the drop ship products is excellent, but consider all of those other deal as well.
Make certain you’re both happy
Negotiating isn’t pretty much getting the lowest possible price away from your dropshippers, you should make sure the offer works best for the two of you. If you get those to commit to too low a price, they may cut corners elsewhere, just like a less reliable shipping option, to create some money back. Real negotiation is approximately finding a great deal, for all parties.
Finally, once you’ve negotiated a good price together with your dropshipping supplier, make sure you revisit the arrangement regularly. Don’t see negotiation as something you simply do once. The economic crisis is constantly changing, so ensure you are always looking at methods to increase the deals you might have together with your suppliers.
Negotiation isn’t something that comes naturally to everyone, nevertheless it is an important part of running a successful business. You should always be looking to negotiate the best offer to suit your needs and wholesalers – this way your relationship will grow, as well as your profits.
When you are comparing your wholesale prices, always remember that you are not the main one subjected to the overhead cost. You should also always take into consideration the shipping fee. Some suppliers offer free shipping, and a few nvkdth charge more shipping fees than the others. Accumulate the selling price the shipping fee and then compare the entire cost with your supplier wholesale price shipping fee. This will provide you with an accurate result.
Furthermore when comparing your wholesale prices, you should always do a comparison with the average prices you locate on eBay or Amazon. The reason why being that not every seller uses drop shipping. Some sellers might be buying products in large bulk with a cheaper price or they could be buying replicas or cheaper similar products from China.
Most inexperienced sellers will compare their wholesale costs using the absolute lowest prices available on eBay or Amazon and jump too quickly to a conclusion. You have to always compare your prices to the averages, and don’t quit before you even begin selling.
Keep in mind that the quality of the products is very important and will directly contribute to your long term success with your web business. Concentrate on providing great quality products, and great quality service, along with your business will thrive.