Want to save time, money, and stay clear of big supplier errors? Here's what you need to know:
Many Canadian beauty shops lose money because of bad supplier talks. 80% don’t get the best deals, and 47% of bosses say they're not good at negotiating. This means more cost, worse product quality, and late tasks.
Here’s how to dodge these common errors:
- Not Planning Well: Without set aims or knowing the market, you risk high prices and wrong terms.
- Not Following Canadian Rules: If suppliers don’t follow Health Canada's tough laws, you could face legal problems.
- Using Just One Supplier: This is risky. Have more options to keep clear of delays or price rises.
- Giving In Too Much: Know your value as a buyer. Stay strong to guard your profits.
- Poor Talking: See suppliers as allies, not just sellers. Talk often and openly to build trust.
Key Tip: Getting ready is 80% of winning a negotiation. Know your aims, the market, and what your supplier does well and poorly.
Avoid these traps to get better deals, keep up quality, and have good, long-lasting ties with suppliers.
10 Procurement Mistakes And How To Immediately Avoid Them
Not Ready Before You Talk Deals
Going into talks with sellers without getting ready can cost you time, cash, and work. For beauty pros in Canada, not being ready is even more risky because of the strict rules from Health Canada and a tough market. If you don't have a strong plan, you might get bad prices, weak terms, or low-quality products - putting you at a loss right from the start.
Being ready is key to good talks. The more you get ready, the more power you'll have over the end result.
Set Clear Aims Before You Start
Before you talk to sellers, you must be clear on what you want to get. Having clear goals is key for talks that work. First, know what you must have and what you can bend on. For instance, if you have a clinic in Toronto, you might care more about quick delivery than easy pay terms, or you may need a 15% price drop to keep a 40% profit rate.
Make your goals direct and clear. Instead of just wanting "better prices", aim for "I need to cut product costs by 15% to keep my profit rate." Or, if you have a sales goal, match that with your price plan. Clear goals help you focus on the main terms and make it easier to guide the talk to what you want.
Know Your Market and Sellers
Knowing more means more power in talks. Spend time getting to know your market and possible sellers well. Look into their history, fame, money status, and how they work. This work is great for seeing strong and weak points before you even start talking.
In Canada, meeting Health Canada rules for beauty items is a must. Make sure your sellers meet all rules and can show the right papers and certs. This step keeps your business safe and makes sure of product quality and safety.
What buyers say can also tell you a lot. Check reviews and feedback to see how reliable the seller is and how good their service is. Often bad reviews about late deliveries or uneven quality should be a warning.
Lastly, try to understand what your sellers want. What are their aims, troubles, and main things they care about? Knowing this can help you during talks. For example, if a seller likes long-term deals, show how you can be a steady and sure buyer.
Putting time into research gets you ready to talk with insight. You'll be more ready to ask the right things, spot issues early, and show you're a well-informed buyer who should get the best terms.
Ignoring Canadian Regulations and Compliance
Not paying heed to Canadian rules while picking suppliers can be a big, costly error for beauty experts. This might result in legal issues, pricey product take-backs, and messes in your supply flow. These problems could hit your work hard.
The worth of Canada's beauty market is set at US$1.43 billion for the year 2024, and it's thought to rise to US$1.7 billion by 2027. With this rise, there's more watch from Health Canada, making it more crucial to stick to the rules.
Health Canada states, "All cosmetics sold in Canada must be safe to use and must not pose any health risk. They must meet the requirements of the Food and Drugs Act and the Cosmetic Regulations".
Not thinking about these rules when you talk to suppliers puts your firm in deep danger. Products that don't follow the rules may be stopped at the border, face legal issues, and hurt your good name, not to say the danger to your buyers.
The rules are wide, they cover all from what's in the product to how it's tagged. For example, Health Canada's list now blocks or limits 573 things. It's key for your supplier to know these limits and show proof they follow Canadian rules.
Make Sure Suppliers Fit Canadian Rules
To start, deeply check your suppliers. Before you sign any deal, make sure the supplier follows Canadian rules. Start by asking for proof that they use Good Manufacturing Practices (GMP). This shows that products are made, stored, and packed in clean places. Without this proof, the safety and quality of the items could be bad.
You should also ask for full lists of what's in the products to check that no parts are on Health Canada's blocked list. This list has stuff like mercury and limits things like formaldehyde and parabens. Also, all beauty items must have tags in both English and French, as the Canadian law says.
For suppliers from outside Canada, there's an extra step. From October 9, 2024, they must pick a person in Canada to deal with Health Canada.
Another key step is to send the Cosmetic Notification Form (CNF) to Health Canada within 10 days of selling the product. While this is the seller's job, working with the right suppliers can make this easier.
Keep Up with Rule Changes
Canadian rules change often as Health Canada finds new safety issues or updates old rules. Keep an eye on Health Canada's site and messages for changes to the list and other rules. Often check your supplier deals to make sure they match with the latest rules. Having parts in the deals that make suppliers tell you fast about any rule changes that affect their items can keep your business safe.
Making a check list is a smart move to check new suppliers or look again at old ones. Your list should cover GMP proof, that ingredients fit the rules, tag needs, picking a Canadian rep for foreign suppliers, and the supplier's plan to keep up with rule changes.
Remember, buyer safety laws in Canada cover rules at federal, state, and local levels. Making sure your suppliers meet all these rules is key to keep your firm and your buyers safe. Regular checks not only keep you up to date but also let you talk well with suppliers.
At Beauty Pro Supplies Canada, we focus on meeting these tough standards to make sure we give top quality and safe beauty items. Taking time to check things well is a small move compared to the risks and costs of not following the rules.
Using One Supplier
If you use just one supplier for your beauty store, you put your shop at big risk. It's good to talk well to get deals, but it's key to have many sources for your goods to keep things going well. When your only supplier has delays, bad stuff, or other problems, it can hit your shop fast and hard.
Here is a huge fact: around 85% of supply chain mess-ups happen low down, where shops can't see well. For beauty pros in Canada, this danger is bigger because of trade issues with other countries.
Take the price talk between Canada and the U.S. as an example. A 25% price hike on Canadian things could raise costs a lot. Think of $10.00 shampoo now costing 25% more. If you're stuck with one supplier, you can't change prices easily.
Using just one supplier can also bring risks like them having money troubles, not being able to make enough, or not making good stuff. In short, your shop depends too much on how they do - a dangerous spot to be in.
One Supplier vs. Many: Good and Bad Points
It's key to look at the good and bad of using one supplier or many. Here's a quick list:
| Aspect | Single Supplier | Multiple Suppliers |
|---|---|---|
| Cost | Get low prices with big buys | Costs are high, but can cut by shopping around |
| Relationship Management | Strong ties, easy talks | Hard to handle many |
| Risk Exposure | Big risk if problems happen | Safer with many options |
| Quality Control | Same good work every time | Work may change from one to another |
| Flexibility | Can't change much in tough times | Can change and pick from many |
| Administrative Burden | Simple to buy and pay | More work with many deals and forms |
Dealing with more than one supplier can be a good safety net. When suppliers know there is competition, they tend to offer better prices and service. It might be hard to manage so many contacts, but the perks, like less risk and saving money, usually make it worth it.
Make Backup Plans
To stay safe from disruptions, it's key to have backup suppliers. This stops you from being stuck if one fails.
First, use your current ties to make backup plans. Talk about what to do in emergencies, like using other ways to make things, different routes for shipping, or getting things first when there is little to go around. Putting these plans in your contracts can save you a lot of trouble later.
Try to work with suppliers from different places too. This cuts down the trouble from local problems like bad weather, worker strikes, or new rules. This way, a problem in one place won't mess up your whole supply chain.
Tech can change the game. Digital tools let you track everything in real-time and get alerts, so you can handle problems early. Many beauty experts in Canada use these tools to handle delays better.
Look at what Japanese firms did in recent global supply troubles. In 2020 and 2021, their government gave out a lot of money to get businesses to make things outside of China. By April 2021, over 80% of Japanese makers were growing their work, opening new sites in Southeast Asia.
Also, think about keeping a good stock of important products. Having these items can help if a supplier has issues. This doesn't mean using all your cash for stock, but having some extra gives you room to move. It also lets you look into things like big buys or other brands before prices go up.
At Beauty Pro Supplies Canada, we focus on keeping a strong supply chain. By dealing with makers in many places, we make sure Canadian beauty pros always have what they need, even if some suppliers have problems.
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Giving Up Too Much During Negotiations
In the beauty world, it's easy to give up too much when you talk deals, mainly if you want to end a deal soon or keep a good tie with suppliers. Yet, giving up too much can cut into your profits and start a bad trend for later talks.
If you give up too much, you show suppliers you're okay with not-so-great terms. Over time, they may expect you to fold just as easy in the future, shaving your profits. In Canada’s big $11 billion beauty market, keeping a lead is key, and giving in too much can risk this edge.
The harm isn't just about losing money now. Weak deal-making can drop your pull, making it tough to get good terms later. The trick to dodge this is to know your worth as a buyer and stand strong on what you bring.
Know Your Worth as a Customer
Knowing your value in talks is vital. Many beauty pros think less of their trade power, often bending too much to what suppliers want without using their stance well.
Like said before, good research helps a lot in talks. Start by finding out what your supplier cares about - are they looking for steady orders, fast pay, or a long-term link? Knowing this helps shape your plan. Also, be clear on your own aims and limits before you start the talk. This prep keeps you strong under stress.
Canadian beauty pros have a plus as more folks like local stuff. Use this by showing how you help local work.
While talking, ask big questions to learn what suppliers care about. Listen well, but keep your needs in view. This balance helps you stay in charge and build give-and-take.
Use Good Talk Methods
Once you know your value, use strong talk tactics. The aim is to guard your profits while making plans that help both sides.
Starting with a win-win view is good. This doesn't mean you drop your main goals or miss out on value. Rather, it’s about finding ways to fill your supplier’s needs that don't hurt your business.
"When entering any negotiation, it's important to start with a win-win mindset. This doesn't mean compromising on your key objectives, nor does it suggest that you should leave value on the table. Instead, it's about identifying areas where concessions can genuinely benefit your supplier without negatively impacting your company. It's about finding common ground that makes both parties feel satisfied with the outcomes." - Philip Ideson, Art of Procurement
A simple tip is to listen more than you talk in a deal - 70% listening and 30% speaking. This lets you find out what the supplier really wants. Use clear data like market facts, trend reports, and past spending to support your ideas. If you give something up, make sure it’s a smart move. Aim for things that matter more to the supplier and less to your costs.
Your power to buy is a strong tool too. Big orders or deals that last a long time can give you a good edge. Plus, look beyond just the price. Things like when things arrive, how you pay, how good the things are, and dealing with risks all add to a deal's true worth.
Always write down what you agree on well. Good records keep your needs safe and make sure everyone agrees on the deal.
At Beauty Pro Supplies Canada, we know how key smart talks and careful record-keeping are. These steps protect your profits and help grow firm, ongoing ties with suppliers.
Weak Talks and Working Together
Even if you plan well, keeping talks open is key to strong work ties over time. Sadly, many beauty workers in Canada see deals with suppliers as just trades, not joint work. This way of thinking can make them miss out on good stuff and put them at a loss in the tough beauty market.
When talks go bad, suppliers might not be as ready to change, may slow down service, or limit what products are available. If they feel they are not trusted or valued, they might focus on other clients. This can cause late deliveries or even issues with product quality.
Keep Talks Open and Clear
Good supplier ties are based on clear and steady talks. It's not just about making a good deal; you have to keep talking even after the deal is done. A big mistake beauty pros make is only talking to suppliers when things go wrong, which ends up feeling like just trading.
Instead, set up regular chats, even if all seems fine. Use these times to talk about new products, likely supply issues, or changes in your shop. Being ahead of the game keeps you aware and makes the tie stronger.
Being open matters. Tell them about your needs, like changes in seasons, plans to grow, or expected problems. This lets suppliers understand what you need and see you as a team player, not just a buyer.
Listening is just as key. Hear what suppliers say about market changes, rule updates, or shifts in the industry. Acting on what you agree on and showing that you value their thoughts can build more trust and better teamwork.
"Good and effective communication in a salon means each person has been clear, complete in their thoughts, have conveyed the message that was intended to be heard and each party acts with compassion."
Talk with people in many ways to keep in touch. Email is good for serious asks and saving info, but talking or video calls make a closer link. Lots of suppliers have apps or websites to help order and follow goods - use these to make things easy.
Talking a lot and well, and making good deals, brings long-time wins.
Use Stories of Good Work
Tell about your wins and happy clients to gain trust and help in talks. Look at how items have made your work better, like happy return customers or great reviews. Use these wins when you talk about deals or ask for extra favors.
Happy clients talking help a lot. Show how items or care made things better for them. Suppliers see this real effect on your work and think of you as a good team mate.
If you need more time to pay or want better prices, show references. Link suppliers with happy customers who like your work and trust you. This adds trust and shows you want to keep a strong team.
Make it known you're active in your local beauty scene. Canadian suppliers like to work with those who help the local place, like with events or teaching. Talking up these actions can help in deal talks.
When you talk deals, use success stories to show how better prices or help could grow your work and in turn, sell more of their items. This changes the chat from "what you need" to "how we can grow together."
At Beauty Pro Supplies Canada, we see that pros who share wins and talk often have the best ties with suppliers. These ties bring better prices, top service, and special items that help businesses do well.
Lastly, write down all your talks and deals with suppliers. Clear info stops mix-ups and shows your good work, helping you see which suppliers keep their word.
Ending Thoughts
Good talks with sellers are key to winning in the Canadian beauty game. The issues we've hit on - like poor prep and weak talks - can push up costs and slow growth. Get this: 70% of talks fail as folks aren't ready enough, and 82% of sales folks say they're not ready for big talks. These numbers show how key it is for beauty pros in Canada to get better at negotiating.
To get better, aim to set clear goals, know the rules, mix up your seller list, and keep talks open. Don't just think about price - think about quality, service, and the long run too. As negotiation pro Harvey Mackay wisely puts it:
"Success in negotiation is 80% preparation and 20% improvisation".
By not making common slips like not prepping enough, not looking at rules, or talking bad, you can set up strong and long-lasting ties with suppliers. Such links don't just cut costs - they make sure you get better goods, fast help, and key aid when things go wrong. Good suppliers can help your shop get through tough times while others face slow or hit and miss quality.
Using a smart way of thinking brings quick good things and helps you do well for a long time. In a world as quick as beauty, you need to keep up with your suppliers. Seeing suppliers as team members, not just sellers, leads to better deals, steady quality, and more trust. When both sides work as one, all win.