How to Get Better Pricing From Suppliers – Amazon Seller Secrets Revealed
4 Rockstar Sellers Reveal How to Get Better Pricing From Suppliers!
Ever wish you could get better pricing from suppliers? One of the best ways is to forge a great working relationship, but sometimes they need a little more persuasion. In this Amazon Seller Secrets Revealed video, our special guest sellers answer:
“What is the strategy you use with your supplier to get better pricing?”
Check out the video below:
Here is a more in-depth look at the answers:
The best way to get better pricing from suppliers is…
Anthony Lee, COO at SIXLEAF, LLC
“My favorite strategy for getting better pricing from my supplier—it works particularly well in the beginning, and that’s to pit another supplier against them. So essentially what I’ll do is I’ll [say] ‘We’re looking at a new product,’ [and] get the initial quote.
Then I’ll say ‘Hey, obviously, I like working with you [and] I know that your quality is there. However, my partners are looking at another factory [and] they are giving us this much of a discount. It’s looking very attractive from the economics, [so] if you could meet us at this price, we won’t even consider them, and I’ll tell my partners ‘Too bad, we’re going to continue to work with you.’
That’s worked about 95% of the time.”
Chris Rawlings, CEO/Founder of JUDOLAUNCH
“My situation with my main supplier (I have multiple suppliers, but there is one major one that I rely on)—my point of contact there ended up leaving and started his own practice. And that opened my eyes to the possibility of playing two suppliers off one another.
He immediately tried to take my business with him to his trading practice and bring our business to another place, which then allowed me to take those prices to my supplier and say ‘Hey look, similar quality, I now have this bid. I’d like to stay with you guys, but you have to meet this price.”
Timo Bock, FBA Business Broker at DRAGONFLIP
“What I do is I just ask for a lot of different quotes from a lot of different people and pick the best…Once I have so many offers on the table, eventually one of them is going to be better than the others.”
Taz Ahsan, Host of the AMAZON ENTREPRENEUR PODCAST
“[What I] tend to do is go for fairly large initial orders. They range between 2000-10,000, and that way, I can see what discounts I can get [and] I can ask.
What I can also do is ask what the 10,000 discount is. If it’s only going to be negligible and my financial situation says “Well, that discount isn’t going to really help you much right now, and it’s best to just get the order in and start selling the product, then that’s the road I’ll take.
But I like to see all the numbers in front of me because it could be a difference of a thousand dollars or it could be a difference of a hundred dollars. It depends on how much maneuvering your supplier has to work with—every supplier is different.
Most will never give you their best price upfront and if you throw some competition against them, say ‘Hey, this is the price I’m getting.’ Even sometimes name-dropping, because they know other factories want to take their business, I always tend to get a much better price.
Let’s say if my initial price is $2.50 per unit, I tend to get that down by 20-25% when I go up to 10,000. But for me, on 10,000 units, that’s a big saving.”
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