How do I check a computer repair shop’s parts suppliers and return terms?
List every parts supplier, what the shop buys from each, and the written return and credit terms. Check how much of the buying rests on one source and how often orders arrive late or wrong. A shop with a single supplier and loose return terms carries a risk you can see in advance.
Ask for the supplier list with the main items bought from each, and several months of invoices. Compare what the shop buys with what it repairs. Look for credit balances, unpaid bills, and parts ordered but never used. Return terms matter in this trade because wrong or faulty parts are common. Ask what is written down and what is only a friendly understanding with a sales rep.
Then test dependence. If one supplier provides most of the parts, ask who else could step in and how quickly. Read about diversifying a supply chain and ask whether the owner has ever had to switch. Speak with the suppliers, if the seller agrees, to learn whether the account is in good standing and whether terms would hold for a new owner.
Finally, check the stock. Count what is on the shelves and ask what is slow or obsolete. Return rights on old stock may have lapsed. Your accountant can help you judge how inventory should be treated in the deal. Ask finally about lead times for common parts and whether the shop keeps a buffer. A buyer who takes over without understanding the ordering rhythm may run out of a popular part in the first busy week.
Key takeaways
- List suppliers and what the shop buys from each.
- Ask for return and credit terms in writing, not by habit.
- Find out how much buying rests on one source.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentHow to diversify your supply chain
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