Finding suppliers and distributors
Find who supplies your shop, compare them on more than price, and negotiate terms you can live with.
6 min read
Your suppliers decide a large part of your margin, how often you run out, and how much cash you need. Whether you are setting up a new shop or have bought from the same person for years, it is worth knowing who else could supply you and on what terms.
Who supplies a shop
Most small shops buy through a few kinds of supplier:
| Supplier | What they are good for | What to watch |
|---|---|---|
| Company distributor | Branded goods, regular delivery, schemes and offers | Minimum orders, fixed delivery days |
| Wholesale market | Wide choice, cash prices, buying small quantities | Your time and transport, no credit at first |
| Local maker or farmer | Fresh or unusual items, better margin | Consistency of quality and supply |
| B2B ordering apps | Ordering from the phone, delivery to the door | Compare prices; check what happens with returns |
You will probably use more than one. A distributor for the brands everyone asks for, the wholesale market for the rest.
Finding them
- Ask the brand. The phone number for a company's local distributor is often on the pack, or the company's sales representative will find you once you stock their products.
- Ask other shopkeepers outside your immediate area — they are not competing with you, and most will tell you who delivers reliably.
- Visit the wholesale market on a weekday, early, and just walk around noting prices before you buy anything.
Compare on more than the price
The cheapest supplier is not always the cheapest. Before you choose, find out:
- Delivery — how often, how reliably, and whether they bring small orders.
- Credit — how many days they give, and what happens if you are late.
- Returns — whether they take back damaged, expired or unsold stock.
- Schemes — the free goods, display payments or discounts for reaching a target, and whether the target is one you would reach anyway.
A scheme that gives you one free carton for buying ten is only a discount if you would have sold all eleven. Buying more than you can sell to earn a scheme turns a discount into stock you are paying to store.
Negotiating, politely
You have more to offer a supplier than you might think: regular orders, prompt payment and shelf space. Ask for what is worth most to you.
- Pay on time, every time, for the first few months. It is the strongest argument you will ever have for better credit terms later.
- Ask for the next price break. "What would the price be if I took this every week?"
- Ask for a trial on new products — a small quantity, on return-if-unsold terms.
- Get it in writing. A WhatsApp message confirming the price and credit days is enough.
Keep a second supplier
Even if one supplier does everything well, know who you would call if they stopped. A late delivery during the festival season, or a distributor changing their territory, can empty your best shelves in a week. A second supplier for your fast sellers is cheap insurance.
Keep a simple list: supplier, phone number, what they supply, credit days, delivery day. Stick it near the counter. It saves time every week and saves the shop the day you are not there.
Ask the tool below about suppliers for your own kind of shop and city; it can help you work out what to ask and what to compare.