Choosing the best electrical supplier entails a lot more than looking at a bunch of price lists. Your decision will be influenced by a variety of factors such as price, cost, dependability, and service. The value of these various variables will be determined by your company’s goals and strategy.
A proactive approach to electrical supplier selection will also assist you in better understanding how your own future customers weigh their options.
This guide walks you through a step-by-step process that can help you make the best decisions possible. It will assist you in determining what you want from a supplier, identifying possible suppliers, and selecting your electrical supplier.
We will cover the following:
- Thinking strategically when choosing an electrical supplier
- What to look for in an electrical supplier
- What to look for in an electrical supplier
- How to build a shortlist of electrical suppliers
- Choosing the best electrical supplier for your business
Thinking Strategically When Choosing an Electrical Supplier
Electrical suppliers that sell goods or services that meet – or exceed – your company’s needs are the most effective. So, rather than paying for what electrical suppliers want to sell you, it is best to be aware of your business needs and what you want to gain by buying, before searching for electrical suppliers.
If you want to reduce the time it takes you to service your customers, for example, electrical suppliers who provide quicker delivery will score higher than those who compete solely on price.
The game of numbers
It is worthwhile to consider how many electrical suppliers you need. Buying from a carefully selected community can have several advantages:
- You will be able to exert greater leverage over your electrical suppliers.
- Your company will become more valuable to them; and
- You will be able to strike deals that offer you a competitive edge.
For example, if you spend N500,000 per month on a rush job for a key client, your electrical supplies are more likely to go above, than if you spend N250,000 per month.
It is, however, important to provide a variety of sources. Buying from a single electrical supplier can be risky; what happens if they disappoint you or go out of business?
Similarly, while exclusivity can encourage some electrical suppliers to provide you with better quality, it may also encourage others to become complacent and lower their standards.
What to Look for When Choosing an Electrical Supplier
Remember, if they fail to deliver, you will fail to deliver to your customer. Your consumers associate bad quality with you, not your electrical suppliers, so the quality of your supplies must be consistent.
ii. Money well spent.
The cheapest option is not necessarily the best deal. If you want your electrical suppliers to be reliable and high-quality, you will have to determine how much you are willing to pay for them and how you want to strike a balance between cost, price, quality, and service.
iii. Excellent customer support and direct contact
Your electrical suppliers must either deliver on time or be fair and give you plenty of notice if they are unable to do so. The best electrical suppliers would continue to speak with you on a regular basis to learn about your needs and how they can better support you.
iv. A collaborative approach
Both the supplier and you would benefit from a good relationship. You want your electrical suppliers to understand how important your company is to them, so they go out of their way to give you the best service possible. And you are more likely to get this answer if you demonstrate how important your electrical supplier is to your business.
Identifying Possible Electrical Product Vendors
Electrical suppliers can be found through several methods. It is best to compile a shortlist of potential electrical suppliers from a variety of sources, so you have a larger pool to choose from.
i. Observations and Suggestions
Inquire about your friends and business associates. Someone who has used a company’s services is more likely to give you an accurate evaluation of its strengths and weaknesses.
ii. A List of Directories
It is worth browsing through directories like Yellow Pages and Google My Business if you are looking for a local electrical supplier.
Putting Together Electrical Suppliers Shortlist
You can start from a list of what you need, then progress to create a shortlist of sources once you have a better understanding of what you need to purchase and have found some possible electrical suppliers.
Ask yourself the following questions when you consider the firms on your shortlist:
- Will these electrical product vendors be able to provide exactly what you need when you need it?
- Do they have a stable financial situation?
- Have they been in business for a long time?
- Is there someone you know who has used them and can recommend them?
- Are they on any trade organizations’ or government’s authorized electrical supplier lists?
Make a list of no more than four or five candidates after doing some analysis. Approaching a possible electrical supplier when there is a slim possibility of them meeting your needs is a waste of time for both you and them.
Choosing an Electrical Product Vendor
If you have a manageable shortlist, approach prospective electrical suppliers, and request a written quote as well as a sample, if applicable. It is best to give them a straightforward summary of what you need, how much you will need it, and how much business you plan to put with them.
i. Request a quote.
It is a good idea to ask prospective electrical suppliers for a firm price in writing for a period, say three months. You may also inquire about long-term or high-volume contract discounts.
ii. Compare and Contrast Possible Electrical Product Vendors
Although price is significant, it should not be the only factor you consider when selecting an electrical supplier. Lower prices may indicate lower-quality products and services, which may not be the most cost-effective choice in the long run. Be assured that your electrical supplier will be able to make a fair profit at the quoted price for the company to be profitable.
Also, keep in mind that the labor practices of your electrical suppliers can be used to determine your company’s credibility. It is smart business to think about the ethical aspects of your supply chain.
Choosing the Best Electrical Supplier for Your Business
i. Recognize the requirements.
Make certain you understand what you require. Do not be swayed by sales pitches that are not relevant to your needs. Understand the difference between a strategic electrical supplier who provides products or services that are critical to your business.
ii. Make Time for Study.
Choosing the right electrical suppliers is critical to the success of your business. Do not try to save time by purchasing from the first electrical supplier you come across.
iii. Inquire about Them.
People or other companies with first-hand electrical supplier experience will provide you with valuable advice.
iv. The Cost Is Not the Only Consideration.
Other considerations, such as reliability and speed, are equally critical when selecting an electrical supplier. If you buy cheap but consistently disappoint your customers, they will begin to look for alternatives.
v. Do not Buy from Too Many Different Electrical Product Vendors…
Limiting the number of electrical suppliers you purchase from would make it easier to handle and probably more cost-effective. This is especially true for low-value-added electrical suppliers…. but do not depend on just one electrical supplier.
It is always a good idea to have a backup supply source on hand in case of an emergency. This is especially true when it comes to electrical suppliers that are critical to your company’s success.
At Detopsy Electricals, we are always working hard to make sure we satisfy important requirements and our customers’ expectations. We are an authorized Schneider distributor, and our prices are Schneider-recommended, industry-standard, and competitive.
Try us today!