Action - Evaluate Supplier Offers
in this video, we're going to evaluate our supplier offers and start to negotiate. And the one sheet we're gonna want to have open is our supplier comparison sheet. Now let's head over to Alibaba dot com and look at those messages from here, click on my Alibaba, then click on message center and we're gonna start recording our offers in our supplier comparison sheet. And let's start with the top one. And what we're looking for now is minimum order quantity and price per unit. The first thing we're going to take a look at is the name of the company. And that way when we go to our supplier comparison sheet, we can make sure we find it on our list. So the one we're looking at is this one right here. Now let's make a note of the minimum order quantity and the price here. They weren't going to give me a quote unless I told them how many pieces I was thinking about ordering. So I told them I'm thinking about ordering 100. And they replied saying their price per unit is $1.13. Let's make a not...
e of that here and now that we've done that. Let's take a look at our next supplier. This supplier originally said their minimum order quantity was 1000 units. But we sent them a message asking if they could go to 200 And they replied saying they can but they're going to have a little bit of a higher unit price at $5.70. So let's take a look at the name of the company, find that on our suppliers sheet and then add this information, here's the company. And the minimum order quantity was 200 And the price was $5.70. Now it's interesting here what we have because on one hand we have a very high cost per unit. And on the other hand we have a very low cost per unit. And if you remember back to an earlier video, we were expecting to spend $2-$3 on each unit. Let's see what the other suppliers are quoting. If we scroll down. I remember this one here said that they were not going to budge on the minimum order quantity of 1000. And so I don't forget this. I'm gonna make a quick note. So here's the name of the supplier and I'm gonna look for that name. And now that I found it, I'm gonna say M. O. Q. Of 1000. And there's no point of putting in the cost per unit. Because I know I'm not going to deal with that supplier For the supplier. We're still waiting to hear back from them to find out whether or not they're going to drop their minimum order quantity from 1000 to 200 to keep ourselves organized. I'm gonna make a note of that in our supplier comparison sheet. And I'm looking at the company name here which is East Honey. And I'm gonna find that on our sheet and then make a note. I'm still waiting to hear if they will drop M. O. Q. From 2 200 And here we have a minimum order quantity of 100 pieces and the price per unit is $3.70. So first of all let's make a note of this company name. Find it on our sheet and adding the information 100 And $3.70. And if we scroll down we'll see there's another one here. And this one has the minimum order quantity of 100 and a price per unit of $3.48. So let's update that information. New meal. M. O. Q. is a 100 Price per unit is $3.48. One thing to note at this point is just because they've quoted this price. It doesn't mean that we can't negotiate and try to get it lower. But it gives us an idea about where they're starting at with their price. Now we have two suppliers left and I know both of these suppliers haven't responded yet. Normally I would make a note saying that it's been a long time since they've responded which is a bad sign meaning their response rate is very slow but because we're just at the very end of the chinese new year at the time of filming this I'm not going to mark that against them because the truth is maybe once they get back from that holiday, they're one of the most responsive suppliers here. For that reason, I just want to make a note on our supplier sheet explaining the situation. First of all, I'm gonna look at the supplier name. Um Barry and I'm going to find it on our sheet. And then if we go to the right, I'm going to add this on this notes column and I'm gonna add the same note to the supplier here because they also haven't responded. And this is the supplier at the top. Now that we have all the information here, we can start to evaluate what we've written and start some negotiating. It's interesting to see that we have a big price range from a dollar and 13 cents to $5. per unit Out of these four suppliers, it looks like we have a very doable minimum order quantity 100 or 200 units. Now, of course, I'm concerned about the price of this, $5.70 per unit. But rather than just knock that supplier off our list, we might as well negotiate and see if they're willing to go lower on the price. In this video we evaluated our supplier offers in the next video, we're going to create counter offers, pause this video now and don't move on until you've evaluated your supplier offers