June July 2018

colorad o nga.org LooseLeaf June/July 2018 11 with freight costs. For instance, it is often cheaper to get products from states that don’t require mountain travel to get to your company. • Gallatin: If certain geographic areas are conducive to the growth of different plants, supplier location matters. It wouldn’t be such a concern with hard goods and tools. However, warehouse location can be important. Having a supplier with a warehouse close to you would be helpful when you need products quickly. A supplier’s location can also impact transportation costs, which would be important. How does company age factor into broadening a supplier base? •  Gulley: Generally, we don’t pay attention to the size or age of companies, though some small companies have higher prices, and price is important. The age of a supplier can be important when you are looking for a record of performance and references, but sometimes new companies offer a fresh difference worth trying. Word of mouth is important in purchasing, but seeing is believing. Even if a company has a good reputation, you have to try them out to make sure their quality and service match your expectations. •  Gallatin: The length of time in business can be a factor in supplier selection, but should not be the only factor. New businesses can be more attentive, because without a history of established customers, they need to work harder to get new customers. If a supplier has been around for a while, try to figure out who their customers are and contact them to find out if the supplier lives up to its promises such as for delivery time and quality. What are the disadvantages of broadening your supplier base? •  Gulley: With more suppliers, instead of getting one huge shipment in, you are getting several little shipments in a week, so tracking can be difficult. Every supplier has different methods of tagging their products, so it’s more complicated when accepting deliveries. Another con is pricing; sometimes the more you pool together your order, you can get a volume price, that you can’t get if you are splitting up into smaller orders. • Gallatin: New suppliers can cause problems if they promise but do not deliver as expected or on time. How can you determine if a new supplier is a good fit? •  Gulley: We do a small but sufficient sample order with the new supplier to get a clear understanding of how their quality compares. Service is definitely important, too. If you can get the same quality from different suppliers, but you have a better working relationship with one, you know they will make things right if problems do happen. Building a history of trust working together helps them respond quickly to product issues. Honestly, on the wholesale side, we try to order from companies that order from us, so we’ll do test orders with companies that we are also supplying. • Gallatin: You don’t want to just jump into a new supplier relationship; you need to test them. Find out if their salesperson is knowledgeable and accessible. Their salespeople need to have an interest in your business success, not just theirs. Before placing an order, look at what the new supplier offers besides products. Do they bring ideas as well as an understanding of your needs? If not, you may want to continue looking for another supplier. How can you avoid hurting relationships with current suppliers? •  Gulley: I would say the best way to get into a new supplier is find a new product you want to try and set up an order around that. If your current supplier sees product from the new supplier on your property, you can say we’re trying a new product. Honesty is the best. If they ask you straight up, I don’t think they will be hurt if you say prices were too high or you needed a different variety. I find that nine times out of Photos courtesy of Gulley Greenhouse continues »

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