Vendor Relationships

posted: Friday, June 23, 2017

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This week’s Sales Insight was written by a strategic Partner – Jim Matero of Prime Marketing.

You work hard to build lasting relationships with your clients. You should work equally hard to build solid relationships with your vendors. The following tips will help you forge better retailer/vendor partnerships. This makes doing business more enjoyable and ultimately makes you both more profitable.

  • Consider being more important to fewer vendors. It’s better to have 20 vendors you use frequently than 200 you rarely order from. While the benefits will vary from vendor to vendor, they may include better access to merchandise, more flexible memo opportunities, more forgiving payment plan on overdue balances, etc.

  • Make sure you share the same business philosophy as your vendors. For example, if you reorder frequently, your preferred vendors should have good back stock or be able to manufacture quickly. If you offer your customers strong warranties, do your vendors offer you strong warranties? Do you take advantage of vendor marketing material? Naturally, your best vendors should have great marketing support.

  • Talk openly with your vendors about accounts payable. If you have an outstanding overdue balance, call, explain and work out a payment plan. And conversely, you may be able to negotiate a discount if you pay upon ordering instead of taking terms.

Finally, here are a few questions to consider when deciding on which vendors to continue to strengthen your relationships with, or even when considering a new vendor: Does the vendor sell directly to the public? What exclusivity will you receive? Does the vendor dictate your retail price? The better your relationship with your vendors, the better you can serve your customers.

If you would like more comprehensive information on vendor relationships, inventory management, debt reduction, profitability, retirement or succession planning, please contact PRIME Consulting at 888-849-4978 or visit our website, www.NVPrimeConsulting.com, and click on the CONTACT button.

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