At some stage during your franchise journey you will need to outsource some kind of products or services. These can range from the printing of brochures and stationary, to parts or ingredients and items or ranges of stock. You need to be able to guaranty supply or else you run the many risks with your Franchise and Franchisees. Contract Product Supply is now critical to your Franchise.
When sourcing these goods and services make sure that you shop around. Don’t think small. When your Franchise expands you will need a supplier that can expand with you. See what providers are prepared to do for you, don’t be afraid to ask! The more successful your franchise becomes the more business they can expect through you. You are offering potential suppliers a great opportunity for growth and benefits from the association.
In many cases you may be able to act as the middle man and control all the ordering or direct each Franchisee to the agreed contractor and let them do their own purchasing. This may create some headaches, however it may be very beneficial in that you will be able to control pricing and quality. This can also be a potential source of revenue, however don’t get to greedy; the more money you make here the less money your Franchisees will make, and you want them to do well.
You may have a choice to decide whether to warehouse products yourself and then on sell to your Franchisees with an additional fee included or negotiate with the supplier to deliver direct to your Franchisees based on their orders.
A good negotiator will settle the initial arrangement with suppliers on the potential sales rather than existing ones and potentially ensure a greater profit margin. As your Franchise group grows, so does your buying power and the potential profits for you and your Franchisees.
You will be seen as a valuable customer once you have built up a solid reputation and trading history. Your suppliers will make every effort to ensure that you receive the best quality goods and services at the best process and will make sure they keep you happy.
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