Cheap Sourcing doesn't give High Profit
S**t, this title is wrong. ?
Low price gives a high-profit margin. Even a child can do this much math.
You are right.
But your business is not about getting the highest profits, rather satisfying the customer's needs.
While Sourcing your product, don't focus only on getting lower cost but also keep a check of the quality with it. Sometimes when you push your suppliers too much to decrease the price, they may compromise on the quality for achieving this. And this is something you don't want ever to happen. Otherwise, it may ruin your business.
So, while finding the right suppliers for your product, don't focus only on those suppliers who are giving you the lowest rates.
?Study your product and it's quality needs and always take samples before finalizing your order.
?Don't take the samples only from the supplier who offers the lowest price; keep in mind that his quality might not be as you want, and the supplier offering a little higher price might have the perfect quality you need.
?Don't negotiate too hard; the suppliers may end up compromising on the quality of your product to retain your order.
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