Many people are successful because they work as middleman between suppliers and consumers.It can be difficult to make a career out of this type of work, and you need to know how to minimize the risks.
Step 1: Establish your own business.
You will be establishing your own business when you work as an independent middleman.Start-up costs are low for this type of work and you can get started quickly, but you still need to treat your work as a business.If you want to do business, dedicate the space and supplies you need.A fax machine, a phone line and an e-mail address are needed for your business.If possible, dedicate a separate computer and corner of the house for business.You should be familiar with the legal side of establishing a business.Establish yourself as a business entity.There are restrictions on how the product/service can be traded.When the time comes, make sure you know how to file your taxes.
Step 2: A need should be identified.
Look for a niche in the marketplace.In an area where the supply and demand structure is sluggish, the biggest need will be.Specialty products are usually easier to break into as a middleman.Generic products that are readily available are often purchased direct from manufacturers, and convincing a retailer to change can be nearly impossible if the system it currently uses works well.
Step 3: Potential buyers should be researched.
Who are the consumers of your product or service?Local and non-local buyers might be included in the consumers of your intended business.When you're dealing with a product, you need to research retailers who would be interested in selling it.Look in the phone book or online for local retailers.Look through online databases of non-local retailers.Small and medium businesses are more likely to be searched for than major brands.Traditional advertising may not be enough to find individual consumers and business entities in need of a service.When you first observed the need, start with someone you know personally or a local business.Look for other potential buyers who face the same issues.
Step 4: Get in touch.
Give the potential buyers a phone call after making a list.Find out what they need and what you can do to get them to buy from you.When you're dealing with businesses instead of individuals, phone calls can leave a more professional impression, and you can send an e-mail to touch base with your potential buyers.If you want to speak to the purchasing manager, try to do that directly.Ask the individual if he or she would like to see a wholesale price list.Promise to get the list to the retailer within a few business days if the answer is yes.
Step 5: Find potential suppliers.
It's important to find as many potential suppliers as possible.You can narrow down the possibilities to the top ten by doing your research.You need to look for manufacturers when dealing with products.Unless your focus is solely on a local product, you may want to look for international manufacturers.Suppliers will usually be local when dealing with services.
Step 6: Ask for quotes from someone.
Ask your potential suppliers to give you price quotes on a certain amount of product or service.Determine which suppliers offer the best value after gathering these quotes.Take into account the whole value of the quote.The supplier with the lowest quote may not be the best one if the product it supplies is inferior to another supplier's product.For suppliers of services, the same can be said.
Step 7: Add the cost to your cut.
You will make money as a middleman by earning a certain amount of money from each sale.Commissions of 10 to 15 percent are common for many industries.Suppliers who already work with other middlemen may have a set commission fee.If this is an issue, you need to set your own commission.
Step 8: Inform the buyers.
Contact your list of potential buyers again.You can cut the final cost of the product or service.When providing the final cost to your potential consumers, take into account taxes and shipping costs.
Step 9: The risk can be understood.
Middlemen can thrive in some industries, but most industries want them out of the picture.Your business may not last long if you can't show your value to both consumers and suppliers.
Step 10: Diversification within your specialty is possible.
If you specialize in one type of product or service, you will be stretching yourself too thin.Diversifying the sources and details of the product or service you specialize in will prevent you from being obsolete.It is safer to work with multiple suppliers than it is with a single source.Your business goes under if you only work with one supplier or if your supplier stops working with you.If your supplier suddenly cuts you off, consumers may be less likely to trust or rely on your business.
Step 11: Customer loyalty is encouraged.
To prevent your suppliers from becoming your rivals, you need to make sure that your customers are loyal to you and not to the brand they receive from the supplier.One way to do this is to work with multiple suppliers.The customer is more likely to become attached to you if there is no one supplier to attach to.One way to encourage customer loyalty is to focus on the entire sales experience.Excellent customer service can be provided regardless of the product or service you provide.
Step 12: It's important to focus on quality.
The quality of the product or service you provide to consumers must be top-notch, and the overall experience you offer to both suppliers and consumers needs to be of a high grade, too.If you become the person your buyers and suppliers turn to for a better experience, you can maximize success.Suppliers need to take care of a portion of their marketing and expand their customer base.Consumers are willing to pay for the best product or service.Before offering the best option, you should sift through the junk.
Step 13: You can create a digital presence.
A new business will struggle if it doesn't have an active digital presence.It is easy to access your business through both computers and mobile devices if you make the process as convenient as possible.Establish social media accounts to interact with suppliers and consumers.Consumers should be able to learn about the process, contact you, create accounts, and place orders through your website.Information about billing and order fulfillment should be easy to find.Your digital presence must also extend into the mobile world.Make sure that your website is easy to navigate on mobile devices.Consider using mobile apps to further streamline the process.
Step 14: Exchanges should be faster.
People are used to a sense of instant satisfaction.Middlemen slow down the process of trade.If possible, look for ways to make the process quicker for both consumers and suppliers.Time restrictions should be placed on the delivery of payment and the product or service.All sides should agree to work within your restrictions.
Step 15: Do not stop being responsive.
Your consumers and suppliers should be able to get in touch with you and receive timely responses to their questions and concerns.You should be able to contact the parties you work with by phone, fax, and e-mail.If there is a problem on either side of the process, immediately address it and keep the party informed.Don't leave suppliers and consumers in the dark.During your exchanges, treat both suppliers and customers well.
Step 16: Be flexible.
The best course of action may be the idea you have in your head.Consumers and suppliers can give feedback.Prepare yourself to adjust your business to better fit the needs of those you're in trade with.To determine how well your current process works, watch both sides of your business.Asking the parties you work with to rate the experience is a good way to get feedback.
Step 17: Make sure your business practices are transparent.
People like to know they can trust the businesses they work with.Make it clear to your suppliers and buyers how you run your business.Let your consumers know the source of your supply.Many buyers express an interest in this information so that they can decide whether or not to support a supplier's business practices.Break down the cost for your buyers so they know where the money is going.If they learn the information from another source, they can feel betrayed.