How to Strengthen Vendor Relationships

How to Strengthen Vendor Relationships

One of the key components behind any successful retail establishment is having a great relationship with your vendors. Whether you own a restaurant or small boutique, the people selling you your merchandise and products have somewhat of a hold on your profit margin. That’s why having a great relationship with your vendors means they’re likely to hunt out the best deals, give you the best offers, and keep you top-of-mind when they hear about new trends. Today, we’ll discuss several ways to maintain and how to strengthen vendor relationships.

Think of Them like a Business Partner

Treating your vendors like a business partner works in both parties’ favor. Remember the saying “you scratch my back, I’ll scratch yours”? It applies perfectly to the vendor/client relationship. Be explicit with your business goals so your vendors can clearly understand where you’re coming from and where you’re aiming to go. That way, they can work to provide you with quality items that help to reach your goals. When they do a phenomenal job, you’re more likely to give them more business: hence the two-way street of vendor/client relationships.

Have a Vendor Manager

You’ve heard of account managers before. They are the people in charge of maintaining client relationships and ensuring the product or service they are providing is up to the client’s standards—essentially, they’re the spokesperson for your company. Why not approach your vendors with the same care and consideration? By assigning a dedicated “vendor manager” to each of your vendors, you can be certain you’ll get the feedback you need to keep your relationship strong. These managers will ideally check in with phone calls and in-person visits frequently, which all but guarantees your business will be top-of-mind when new products come out or a fantastic opportunity arises.

Always Be Prepared

Things are going to go wrong. Shipments will arrive late, merchandise will be broken, you’ll be billed incorrectly. Be proactive by setting expectations with your vendors for when these situations inevitably arise. When you have an action plan in place, emotions are less likely to run high, panic is less likely to take over, and anger is less likely to surface. A simple list of “If X happens, we do Y to solve it” scenarios that you both agree to is all it takes to ensure bad vibes are kept to a minimum.

Let Vendors Educate You

Your partnership with a vendor should not just be give-and-take. Ideally, your supplier is an expert in their product, which means it makes smart business sense for them to help you strategize around its use. Make sure they are present for key meetings involving their product. With their help and knowledge, you can gain an edge on the competition.

It’s important to engage with your vendors, treating them more like a business partner than just that person you get your bestselling products from. By creating and maintaining a solid relationship with each one, you’ll know they have your best interests in mind with every transaction.