How Well Do You Know Your Vendors?

The Importance of Building Relationships with Vendors

It’s extremely important to build relationships with your vendors and those around you who can bring in new customers/clients and increase awareness of your company’s branding.

The people you work directly with on your products and services are really the ones with the most to gain when you find success. By taking the time to get to know them, you’ll find a whole host of opportunities you didn’t realize were there.

How To Improve Relationships

Look for great ways to offer your vendors rewards for helping grow your business and everyone wins. One of ways you can do this is by offering performance based incentives that are much larger than their normal charges.

5 Steps for Effective Vendor Partnerships

Here’s the step-by-step process to putting together a partnership with a vendor:

  1. Create an incentive plan that’s irresistible to your vendors by offering generous, exclusive compensation.
  2. Develop a clear, concise and easy to track incentive plan, this will increase competition between vendors and therefore higher performance levels.
  3. Put the generous incentive plan together from their perspective, even take suggestions.
  4. Approach all the vendors you work with and offer an incentive based on performance.
  5. Encourage subsequent sales instead of focusing only on the initial sale. By doing this you can give away more of the profit from the initial sale to your vendors and make higher profits off the back end products. Encourage:
    • Future sales
    • Upsell better and more profitable products/services
    • Cross-sell to additional products

Think of all the vendors you work with and the creative ways you can put together an incentive plan that entices them to be part of your business. Use their talents, capabilities and connections and you’ll both be winners.

Putting together an incentive plan doesn’t have to be a complicated process. Use our Complimentary Discovery Meeting to come up with some great ideas and put your incentive plan together for maximum results.

 

×