How to Spot Shifty Sales Tactics in a Tight Market

Purchasing professionals in the electronics industry are faced with an unenviable task: Getting the right parts at the right price in a scarce market. Increasingly, electronics buyers are often forced to broaden their nets when casting about for the parts that they need—making them a target for unscrupulous sellers.

Of course, for decades, when buyers have needed to turn to the gray market for hard-to-find parts, honesty and transparency have been the watchwords. The gold standard is finding partners who will tell you what they can and can’t do—and keep their word about what and when they can deliver. I tell our team to give the customer all the details (good or bad) that we have—and that this approach will get them better results.  People want and need to procure parts, but they don’t want to feel hustled or sold.

Of course, every buyer hits the moment where they are caught having to buy from a source that is new and untested. In this market, it’s going to happen more and more often—there’s so much pressure to find parts that you’ll end up doing a deal with someone you don’t know well. In those situations, there are a couple of red flags to look for:

• When the story constantly changes. If you can’t get a straight answer out of somebody, something fishy is going on. They should be able to nail down the basics of which parts, how many, when they can be delivered, and what they will cost.
• When you are being rushed. Of course there’s urgency in a constrained market, but there’s should always be time to clarify, ask questions, and do the deal the right way.
• When they want you to wire the money but are hazy on the specifics. It’s vital for procurement to be clear on what they are asking for—and for the seller to be clear on what they are delivering. Ask for the specifics  of date codes, lot codes and other specs on the parts you are buying before you send the cash.
• When nobody knows them. If you have a potential new partner, ask your existing distributors whether they have ever heard of them. Check the potential supplier on a rating system such as IC Source or another ranking site. If you find someone isn’t rated, there’s a real risk that of counterfeit parts.

We are in a new kind of Wild West when it comes to buying components.  When you have to go outside of normal supply chain channels, know who you are buying from, and apply some due diligence to ensure you are working with a reputable company. You may end up making the business decision to  pay much more for a $2 part—but make every effort to make sure that you are limiting the risk as much as possible.

To read the article on EPSNews.com, click here: https://epsnews.com/2022/05/19/how-to-spot-shifty-sales-tactics-in-a-tight-market/