A friend of mine called me today and explained to me about the challenges he has been facing concerning his supplier as a result of him finding it difficult to replace the supply. every month the supplier has been increasing the price of goods and services they offer and the reason why he kept paying is that it is very difficult for him to replace the supplier and after several attempts, and seeing someone that fit perfectly there is also a problem and it is not profitable replacing the supplier because there is a price he has to pay.
another reason why my friend is concerned about the price of the supplies is that suppliers in all parts of the country are not charging much but the main reason why the supplier in this part of the country is asking for so much is because they are the biggest company and they are also the best in the services they provide, which makes it very difficult for my friend to replace them. no supplier in his region can give the kind of services they are offering which makes it seem like my friend is at their mercy.
Don't give them the power
when competition is not much, and if you are the one that is controlling the price of a particular goods, it will be very easy for you to disregard your customer complaints and that is exactly what is happening to my friend. It is also easy for him to be out of business, especially if something happens to his supplier because he’s so dependent on them and he can’t do anything without them, we have many businesses like this with one supplier without considering the options in the market.
we have had some instances where the supplier chose to enter the same business with their customer simply because they control the price and the market can get lower prices from them, and it will be easy for them to take you out of the business and make themselves the full power and this is why it is very important to all always go for business where there is competition among the suppliers because it is difficult when you are dependent on just one person. sometimes you can’t blame those people who stick with such suppliers because they have a lot to lose.
Make your research
The easiest way to get away with this problem is by doing your research because without these you might find yourself in the same situation, especially when you’ve invested a lot into business and one supplier determines whether you will be in the business for a long time or not. it is a very bad situation to be so when going into business, we have to look at it and make sure that there is good competition among the suppliers. the truth is, we will always have the best supplier in every market, but the competitors should be able to provide similar services or the same service so that you will not be at the mercy, and also have the power to negotiate with them.
Thanks for your time.