When It Comes to Suppliers, When is It Too Good of a Deal?

Forbes says bad suppliers can cost you a lot. Essentially, picking out a supplier can affect your company’s growth plan in the best or worst way. That’s why finding and forging relationships with the right ones matter a lot. Here’s a list of considerations you should factor in when you choose your aluminum bus bar suppliers to help you decide if it’s a good deal or just too good to be true:

The discount seems too good

Remember that saying: if it’s too good to be true, it probably is. So don’t get taken in by unscrupulous and dodgy suppliers. If you think the discount is too good, ask questions. The price of the product might come with a huge discount but the supplier might tack on other items and services that could blow up your total expenses. In the end, the discount won’t matter because you will have to shell out more for the extras and other services.

Volume-based commitments

If the commitments in your contract are based on volume, you might need to consider going with a different supplier. Why is this a problem? If minimum volume commitments are in the offing, you might end up paying for services you aren’t even getting. If your supplier lowers the per-unit cost, all while refusing to address any letdown or drop in the yearly commitment, then you end up spending, instead of saving, more.

Bad renewal times

Finding new aluminum bus bar suppliers takes time. That’s why most people would rather renew. But some suppliers don’t tack on extra services and costs until the very last minute, leaving you little time to no time to switch to a new one, even if the new conditions aren’t a good deal for you.
So don’t overpay for those services. Remember these tips before you sign up on the dotted line.