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Are Your Vendors Your Partners? They Could Be

Posted by johngies

Research shows that when we care for our vendors as a stakeholder in our business not only do they do well we do also. Yes financially. One way to do that is to build relationships with vendors that are not just about price, delivery and quality.

Your Vendor Partners have a lot to gain from your success. How can you enroll their support? By taking the time to get to know them, you’ll find a whole host of opportunities you didn’t realize were there.

Can you offer incentives based on performance?

Negotiations with partner

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

  1. Approach the largest vendors you work with and offer an incentive based on performance.
  2. Put the incentive plan together from their perspective, as well as yours.
  3. Create a clear and concise way to track the performance and make it visible for all concerned. We are all more motivated when we can track our progress.
  4. It is not just the first deal with vendors. Perhaps give a little at the front end to reap larger cost savings on the back end as volume grows. Encourage:
  • Future sales through meeting key metrics.
  • Have them help you up-sell and cross sell more profitable products.
  • Create an incentive plan that’s irresistible to your vendors by offering generous compensation.

Consider the vendors you work with and the ways you can put together an incentive plan that enrolls 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 FREE test drive to come up with some great ideas and put your incentive plan together for maximum results.

 

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