Do you have too many eggs in too few baskets? I am talking about vendors here. Have you ever experienced a vendor that turned cold? Ever had a vendor turn on you? It happens and when it does it can be disastrous for your business and your profits.
There is a fine line between carrying too many vendors and too few. Here are a few questions to ask yourself: Am I having trouble meeting the minimum shipping quantity on a regular basis? You might have too many vendors or the wrong vendor.
Does your vendor open new dealers in your marketing area with no regard for your business? If yes, that vendor probably needs to go. My only qualifier to this would be, are you giving your vendor a substantial amount of business? If yes, you need to make sure the vendor is treating your business with the respect it deserves. Is your margin eroding with a vendor? This usually happens because of too much competition. I would voice my concerns to the vendor along with a timetable for correction. If uncorrected the vendor gets the boot.