Don’t Gamble By Putting All Your Vendor Eggs In The Same Basket

March 23, 2021

“Larger companies use a different playbook.” That is the lesson from an article written by Proven Media Solutions founder Dustin Siggins about a small card company who said she was hung out to dry by a large distributor.

Writing for Zenger News, Dustin investigated how Card Bureau, an Etsy-based stationary company sold $15,000 worth of product to Paper Source, just weeks before the larger company filed for bankruptcy. According to Janie Velencia, the owner of Card Bureau, the brick-and-mortar based retailer ordered more from her company in 60 days than it did in all of 2020. Now, it could be years before Velencia and other small business owners like her recoup the money Paper Sources owes her.

Small business owners might have a legitimate gripe when larger companies play the system in this way, but this is a possible outcome of seeking out the bigger players. Business consultant Susan Trivers told Dustin, “Every business…. Needs a variety of buyers, so they aren’t dependent on one large one. “

It is certainly a hard pill to swallow for Velencia. However, it is a lesson small business owners should keep in the back of their minds as they plan for growth and success.

Read the full article here.

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