Questions To Ask Your Supplier Before You Agree to a Deal

Whether you own a restaurant or an office supply store, there’s a good chance that you work with suppliers who provide you with the ingredients and products that you need to run your business. This is usually how most businesses work. Occasionally, suppliers and businesses may engage in contracts or deals that are mutually beneficial. For instance, a business may strike a deal with a supplier to provide them with a certain amount of product each month, or you may have exclusivity deals with a particular produce vendor.

These kinds of deals are great news for both parties because it means a consistent and predictable amount of business. However, it’s important that you don’t rush head-first into these types of deals, as it could spell disaster for your business if you’re not careful. So before you dive in, let’s take a look at some of the most important questions to ask before you sign off on any partnership or deal.

Make sure the terms are completely clear and transparent

Failing to understand the terms and conditions of the agreement will cause problems for your business. It’s vital that you read the contract that you’re about to sign and understand all of the terms and conditions outlined in any documents. If something is unclear, double-check with the supplier and make sure they explain it to you thoroughly.

Are there options for scalability in the future?

While the contract may outline very specific terms and conditions for now, there should always be the option to amend it in the future for the purposes of scalability and flexibility. If the supplier doesn't think this is a good idea, then you may want to look for an alternative that is willing to adjust their services to suit your needs.

Get familiar with your point of contact with the supplier

You should always have at least one point of contact with your supplier. In the event that anything goes wrong with a delivery or if you need to speak with someone urgently, you should have a number that you can call or a person you can contact to help resolve the issue.

Are there measures in place to resolve disputes?

Disputes can happen from time to time. These are usually due to misunderstandings, but it can also be down to contractual obligations and terms. For instance, if you have a contract for a certain number of ceramic bearings, then it’s important to figure out if there are any clauses about specification tolerances. If there’s an issue with a shipment due to the product not meeting your standards, then you should have a civil way to discuss the problem and amend the issue.

Ensure that the product is what you think it is

Lastly, don’t forget to double-check what you’re actually paying for. This is a mistake lots of businesses make when they establish deals over the internet without actually examining the product first. Always ask to see and test the product first before you make a large order.

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