How is Your Relationship With Your Vendors?
It’s extremely important to build good relationships with your vendors and those around. They bring in new customers/clients and increase awareness of your company branding.
The people you work directly with on your products or services are really the ones with the most to gain when you are successful. By taking the time to get to know them, you’ll find a lot of new opportunities you didn’t realize were even there.
To grow your business, you have to find ways to reward your vendors 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.
Here’s the step-by-step process to putting together a partnership with a vendor:
- Approach all the vendors you work with and offer an incentive based on performance.
- Put a generous incentive plan together from their perspective, even take suggestions.
- Develop a clear, concise and easy to track incentive plan. This will increase competition between vendors and therefore higher performance levels.
- 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
- Create an incentive plan that’s irresistible to your vendors by offering generous, exclusive compensation.
Think of all the vendors you work with and the creative ways you can put together a plan that tempts them to be part of your business. Use their talents, capabilities and connections and you’ll both be winners.