Ordering from Vendors
Whether it's items to resell or party supplies to make your dinner party a political hit, you need to work professionally with vendors. You should:
Check to see that a vendor is licensed.
Get referrals.
Ask about additional costs above and beyond the product or item, such as shipping and handling.
Inquire about a return policy if you need to send something back because it is broken or does not work.
Find out the method(s) of payment in advance.
Make sure to let vendors know you are a nonprofit organization. You won't have to pay sales tax if you are tax exempt and have your 501(c)(3) letter to prove it.
One of the biggest problems organizations run into is the issue of timing. It's not the vendor's fault if he clearly explains it takes two weeks to ship and you have not given yourself adequate time. You're always better off having things delivered too early than too late, so it is highly advisable to shop around and compare vendors well in advance.
Make sure to see what you're buying. It's too easy to get inferior products. Get a sample, or at least a good picture with the dimensions of the items clearly listed. This way, you are not in for a surprise when the dresses you ordered for young girls turn out to fit American Girl dolls instead.
Also, look for vendor closeouts or seasonal discount rates. For example, one school group took advantage of the week-after-Christmas half-price sale on holiday cards and ordered 500 boxes of cards at the discount rate. In fact, when they explained they were ordering for fundraising purposes, the card manufacturer gave them an additional 20 percent off. This amounted to a 70 percent discount on cards that normally ran about $10 per box. The group stored the cards in the assistant principal's office closet for about nine months, and then sold them as the following holiday season approached. They were able to sell the cards at close to full price, thus making almost $7 per box of cards, roughly $3,500, for the school. Had they ordered the cards a few months in advance, the cards would only have brought them a $3-per-box profit, and they would have made only $1,500.
