Dealing with Australian Product Manufacturers

manufacturersDealing with a Product Manufacturer is very similar to dealing with a Wholesaler. When you buy from a Manufacturer, you’re buying from the same company that actually hammers, glues, welds, paints and puts the product together. You’re buying right from the source, and it can have a whole ton of advantages, if you’re willing to pay the piper.

First of all, there is a big chance that the manufacturer is going to only allow you to buy in bulk, large quantities, or have a minimum order.

Remember, the company that makes the goods builds their business around design and product creation, not sales. While they do have a small capacity to market, the reason that they use wholesalers is because a wholesaler is THE expert at getting the product into the retail marketplace. It’s really a wise business decision when you think about it.

I would much rather have a Manufacturer concentrating on making good products. The minute that they undertake a sales channel, they have to pay for that added expense, and usually they pay for it by adding it to the cost of their product.

Trade References

Now, when you approach a manufacturer, you need to be prepared. The first thing you must have is all of the business licenses that make you a real business. The second thing that they may ask you for are trade references.

Don’t panic!

A Trade Reference is simply a list of companies that you deal with using your business entity. When we first got started, our bank was our only trade reference (Because we had a Business Checking Account in Our Business Name), and in those exciting days, that was all that was necessary. Having a Bank Account in the name of your business will go a LONG way to building your credibility when you are first starting out.

With A Manufacturer, it’s a different story.

They usually (not always…) require a minimum of 3 trade references. It’s still nothing to worry about. If you have done any business with another Drop Shipper or Wholesaler, they are considered trade references. Even if you’re one of those Store owners who went and paid for the privilege of being a member of one of those wholesale programs – they are a trade reference!

Other Manufacturer Gotcha’s

manufacturersAgain, a manufacturer will most likely sell in bulk, they will require trade references AND they might not ship to a residential address.

If you’re working out of your home, this can present a challenge. If you buy a pallet of goods, the trucking company who is delivering the goods might not deliver to your neighborhood. It’s happened to us twice.

It was just a shakedown.

Sometimes, the trucking company has what’s called “Residential Service” and for an extra fee (surprise, surprise) they will drop the goods off at the end of your driveway or curb.

If they will absolutely not deliver to your street address, see if they will deliver to your local Mail Boxes Etc. If you have an account there, you’re golden.

If all else fails, you have 2 other options.

If you’re still working, see if you can have it delivered to your work address. Keep in mind, if your order is large sized items(s) you’re going to need a way to get it home.

You can rent storage space at a local public storage facility. For about $30 a month, you can have a little mini-warehouse to keep all of your bulk goods. This can be a pain, however, because once you sell the item, you have to schlep down there, get your product(s) and then ship them off. We personally use http://www.kss.com.au/

Still, if that’s what you have to do to make a buck, then don’t let the inconvenience stop your business success.

Of course, you can find dozens of Australian manufacturers at WholesaleFinder.com.au with dozens of hot products you can start selling on eBay.com.au

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