Start Ups:5 Key Questions you should ask suppliers before doing business.

1. What are my payment terms and are they negotiable?
While payments for invoices are often due within 30 days, you can talk to your vendor about getting 60 or 90 days.

2. What will my total costs be?
While a supplier might give you a quote for the cost of a product or materials, be sure to ask about other fees. For example, are there delivery fees, fuel surcharges or restocking charges for returns that you must pay?

3. Can you give me a liability insurance certificate? Your suppliers should provide written proof that they have adequate liability insurance in the event that their products or parts malfunction. Get a new copy of the liability insurance certificate each year.

 

 4. If a product does not sell, are you stuck with it?
You don't want to get stuck with a finished product that flops or the parts and raw materials for a product that doesn't sell. Talk to your suppliers about their return policies. You want to negotiate the opportunity to return unsold products or materials.

 

5. Under what circumstance might prices change?  
Ask what determines a change in price. Is it tied to inflation or an industry index? If prices go up, how much notice will you receive?

For great information and retail locations available for lease contact Sharp Realty or follow us on Facebook or Twitter.

Sharp Realty

400 Union Hill Drive, Suite 300 Birmingham, Al 35209

205-879-1995

www.SharpRealty.com