Tips for small capital business success with vendors

Vendors are also known as suppliers or suppliers. Yes, indeed, in terms of language, a vendor can mean a seller. But in practice, it can be more than that. This is because vendors generally do not sell directly to consumers, but to resellers who sell directly to consumers. Therefore, the vendor is more suitable when referred to as a supplier (who provides supply).

Actually, anyone can run this business, as long as there is sufficient capital and technology literacy. The reason is, nowadays almost all business is done with a smartphone. So, it's a good idea to at least understand how apps like WhatsApp or Instagram work. Because generally vendors, resellers, and consumers use these two applications.

How Does a Vendor Business Work?

In contrast to resellers who only sell finished goods to consumers, vendors can sell various types of goods. Be it raw materials, auxiliary materials, spare parts, semi-finished goods, or even finished products. Usually vendors who sell finished goods work with resellers to trade the goods. Sellers who transact directly with consumers will contact the vendor to send the goods to the buyer, or to them.

An easy example is online shops on Instagram social media. These online shops are resellers who sell their goods directly to consumers. Generally, when there is a request from a consumer, the store will contact the vendor to ask for stock. When there is, the store will ask the vendor to ship it to them or to the consumer directly.

However, vendors generally do not want to send goods in small quantities. Because that's usually the store will take stock from vendors in large quantities. This is where the vendor advantage comes in. When successfully working with more than one reseller, you will continue to get large orders. Keeps the money flowing for you.

How Much Capital Is Needed to Run a Vendor Business?

Vendors do have to prepare more funds than resellers. But that doesn't mean it's a very large number. You can become a vendor with small capital as long as you can choose a product that will sell well. When your capital is small, you should not take a business that is too grandiose.

One example is a meat vendor. With the current high demand for meat, beef vendors can earn up to $5000 per month. However, the initial fund that must be owned is $6000. These funds are divided as follows:

$3000 for a place to store meat in large quantities and is equipped with a cooler

$600 for a meat cutting machine

The rest is for the cost of purchasing meat delivery transport, and / renting a location if it is not available.

Indeed the profit is quite high. But if you don't have a large enough capital, you can choose a vendor business that has a smaller capital, such as a convection vendor that can be directly imported from China or culinary. One example of a small capital vendor that is quite popular is the one related to finished culinary. Like fried macaroni vendors or contemporary drinks.

What Should You Do When Running a Vendor Business?

Although vendors are always sought after by resellers and consumers, that doesn't mean you can sit back and enjoy the results. You have to do a lot of things like pick up the ball and create a good catalog so that your vendors get lots of partners. Here are tips that you can run to make the vendor's business more advanced.

1. Differentiate Reseller Prices and Consumer Prices

Even though both are consumers, you should not give the same price between resellers and direct consumers. Consumers are individuals who buy directly from you and will not buy in bulk each month. While Resellers can be said to be your regular customers. If you don't want to give special prices to resellers, of course they will think twice about continuing to work with you.

2. Ensure Good Catalog Photos

If you look at the examples of most vendors today, they generally post photos of catalogs of goods that are too plain. Some even still have annoying watermarks. It may be that your goods are sought after by many people, but that does not mean that you can be perfunctory on the face of the product. We recommend that you take photos of the items to be sold so that they are clear and pleasing to the eye. Don't take random photos

3. Provide excellent service

When your vendor's business is big, resellers will keep coming to you. For that, you cannot serve them as they are. If you are overwhelmed when you do it alone, you can invite people to become customer service from your vendor. Remember, a good relationship with a reseller can be the key to your success. Because your business lives from resellers!

4. Guide Resellers Well

As explained earlier, resellers are your source of income. So, They must be well guided from start to finish, to be satisfied and come back to you. For example, when they ask you about a catalog, you shouldn't immediately say "See for yourself on Instagram". Maybe the reseller doesn't have Instagram, maybe doesn't know about the social media, or doesn't know your account name. That's inappropriate speech for a reseller. Make resellers part of your team

5. The System Must Be Clear

Now lastly, As a vendor, you should have a good system for running your business. Clarify the flow. This is done so that goods that go in and out, the number of resellers and also financial flows can be seen and evaluated properly. It's a good idea to have a special team to handle this if your vendor's business becomes big later.

Tell them in detail how they can reach your catalog, using polite language. This will make your vendor look more classy and respect other people. When someone feels valued, they will at least think twice about changing vendors.

There are many advantages that you can get by running a vendor business. What is clear, you must be able to maintain good communication with resellers, especially those who are already customers. You should also take a vendor business whose capital is according to ability. Humanize humans

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