Create Great Relationships with Your Vendors

Running a business is like managing a bunch of moving parts with relationships with employees, customers, operations, and, of course, vendors. Vendors supply your business with the products and services that keep things running, but if you’re not careful, those relationships can turn into time and money pits. So, how do you make vendor relationships work in your favor? Here are some smart ways to get the most out of them without unnecessary headaches.

Choose Vendors Wisely

It’s always tempting to go with the lowest price, but a cheap vendor who delivers late or provides subpar service can cost you way more in the long run. Instead of only looking at cost, consider reliability, customer service, and their ability to grow with your business. A slightly more expensive but dependable vendor is often a better deal than one who saves you a few bucks but makes life miserable.

Communicate Clearly and Often

Vendors aren’t mind-readers. If you want things done a certain way, tell them. Set clear expectations from the start. This includes demands on pricing, deadlines, and quality standards. You’ll also want to keep in touch regularly, not just when there’s a problem. The better your communication, the smoother things will go for everyone.

Negotiate Your Rates

Just because a vendor gives you a price doesn’t mean it’s set in stone. Many vendors expect some negotiation, so don’t be afraid to ask for better terms. Maybe they can give you a discount for bulk purchases or more flexible payment terms. The worst they can say is no.

Pay on Time

One way to always get VIP treatment is to try and be the customer vendors love. That means paying invoices on time. When vendors know they can count on you for prompt payments, they’re more likely to prioritize your orders, offer discounts, and go the extra mile when you need a favor.

Have a Backup Plan

Unfortunately, even the best vendor relationships can go south. Maybe their supply chain breaks down, they increase prices unexpectedly, or they just stop meeting your expectations. Always have an idea of where to find a new vendor so you’re not scrambling if things go wrong.

Don’t Be Afraid to Walk Away

If a vendor is consistently causing problems with missed deadlines, poor quality, or bad customer service, it might be time to cut ties. A vendor relationship should be mutually beneficial, not a source of constant frustration. Don’t let a bad vendor drag your business down.

Finding good, reliable vendors is important for your business. At Accucom, we offer a comprehensive vendor management service that takes a lot of the time and effort off your plate. If you would like to learn more about how we go about managing technology vendor relationships, give our consultants a call today at (02) 8825-5555.