What should I ask about a Christmas tree lot’s tree suppliers and shipment schedule?
Ask who supplies the trees, how orders are placed, when each shipment arrives and what happens if a load is late, short or poor quality. Find out whether the relationship is written down and whether the supplier will keep selling to you. Speak to the supplier directly.
A tree lot lives on a few deliveries, so the supplier matters. Ask for the name of every grower or wholesaler and how long the seller has bought from each. Find out when orders are placed, whether deposits are required and who sets the quantities. Request invoices from recent seasons to confirm what was actually bought.
Then look at the schedule. Ask when loads arrive, who unloads them, where trees are held and how they are kept fresh. A late truck on a key weekend can cost a season, so ask what went wrong in the past and how the seller coped. Check whether there is a second source if the first fails. Quality is another question. How are trees inspected on arrival, and what happens to those that are poor? Ask whether the supplier takes back or credits damaged loads. Finally, ask whether the supplier knows the business is for sale and whether they will extend the same terms to a new owner. A call from you early on tells you a lot about the relationship you are buying into. Ask too whether the supplier offers different tree sizes and types, and how the seller decides the mix, because a wrong mix leaves the lot with unwanted stock.
Key takeaways
- Get the names, terms and history of every supplier.
- Ask what happened the last time a shipment was late or poor.
- Confirm that suppliers will deal with you on the same terms.
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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 diversify your supply chain
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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