The goal of all retailers is to make profits. In other words, their principal motive is to attract more and more customers for increasing sales. If you are a kids wear retailer, your goal cannot be different. So, you are also there to garner more and more profits.
In the context of increasing your profits, if someone asks you to mention the parameters that can help you to push up your bottom line, what will you say?. You are most likely to say that selling high-quality products, running effective advertisement campaigns, selecting the proper suppliers, maintaining good relationships with customers, and recruiting efficient employees.
Again, if you were asked if there is anything more, you might tend to say no. But it is not so because the list has not yet come to an end. Yes, the parameters you mentioned are all correct. But you have missed out on a crucial criterion—negotiating the price with the manufacturer or supplier.
You might not have known that proper price negotiation with the manufacturer plays a significant role in pushing up your profit levels. And not all retailers are experts in that essential skill.
Why Does Price Negotiation Matter?
You should make sincere efforts to negotiate the price with the manufacturer you select because that matters greatly to your business.
When you purchase your stocks from kids wear manufacturers, you should bargain for the lowest possible price. However, you might feel that if you continue to negotiate further for lowering the prices, it might offend the manufacturers. And that might lead to them saying no to the deal.
But that will not happen because there are many effective ways to negotiate the price with kids wear suppliers successfully. Besides, when you speak with new suppliers in terms of numbers, you appear serious about the deal. And that creates a good impression of you in front of the suppliers.
A good impression helps a lot in building relationships, which help take the deals forward.
Impactful Negotiating Tips
The fact is, you should negotiate the price with kids wear wholesale manufacturers. But, before you take price negotiation seriously, you should know how to negotiate. It will help if you proceed through the following steps:
Establish a Relationship with the Manufacturer
It is the first step in the negotiation process. So, do not undermine it. Before you enter into the negotiation phase, try to build a relationship with the manufacturer. The underlying idea is that a relationship can prompt the manufacturer to view you as a friend instead of another customer or even a favourite customer.
An excellent trick to strike a relationship is to speak with the manufacturer over the phone instead of communicating only through emails. Make sure to maintain a friendly tone while speaking with the manufacture during your communication over the phone. And, do not restrict your conversation only to business. Instead, ask things, like how are they doing, or was there any family event recently—that will bring a friendly element in your conversation. It will help significantly to cement a good relationship between both parties.
Maintaining a good relationship with suppliers can prompt them to say yes to your price bargaining. And that will help you to get better prices from them.
Maintain Truthfulness
You must have heard of the adage—honesty is the best policy. It applies to business as well. Therefore, ensure you speak the truth and refrain from telling lies. If you pose yourself as an intelligent businessman and speak lies to manipulate the manufacturer, you will likely see things slipping out of your hands. Such deceptions can damage the deal and strain the relationship with the manufacturer, who will never trust you in the future.
But, being truthful does not also mean that you should disclose everything about your business or give away your benefits. Instead, you should tactfully negotiate to get the best deal.
Speak About Your Business
When you meet the supplier for the first time, it is likely that the supplier might not know anything about your business.
As such, it is a good idea to speak about your retail business to the supplier. During the conversation, explain to the supplier what values you create and your expansion plans if you have any. And make the vendor know how a business relationship will benefit them. It can prompt the supplier to agree to your deal at a competitive price.
Focus on Mutual Benefits
Research on the prospective supplier to find their goals, past deals, customers, target markets etc. The study will help you to find the areas of mutual interests that you can leverage during price negotiation to turn the table in your favour.
For example, if the supplier does not agree to your price, you can bring up other things in the conversation, like giving a discount for bulk purchases or other aspects that can benefit both parties. Before negotiating with kids wear exporters, make sure you research their domestic and overseas prices.
Short-list Multiple Suppliers
Short-listing a single vendor is not a good idea. Instead, it is a discreet strategy to select at least three suppliers and get their price quotes. Subsequently, go for the best quote, and negotiate to bring it further down.
Research the Manufacturing Costs
You can negotiate better if you somehow know the manufacturing cost of your prospective supplier. So, do a research to figure out how much money the manufacturer is spending on manufacturing the kids wear. When you know the manufacturing cost, you can get a fair idea of the room for bargaining during the negotiating process.
Play the Going to the Competitor Game
First, analyze the market scenario and then fix a price you will pay for sourcing your kids wear stock. Subsequently, get the price quote from the manufacturer you selected. Finally, when you start negotiating, ask to what extent the manufacturer will lower the price.
If you find that the lower price is higher than what you have fixed to pay, tell the manufacturer that you are getting a much lower price from their competitor. On hearing that, the manufacturer is likely to bring down the price further.
Conclusion
Tactful negotiation with suppliers can help kids wear retailers to push up their profit margins significantly. When the retailers procure their stocks at lower prices, they can also offer discounts to their customers while maintaining profits. In addition, it can create stronger relationships with customers. Therefore, do not fail to negotiate until you get the best deal.
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