Build Vendor Relationships
Have you been building vendor relationships? Do you realize that the more you engage with your vendors the more company awareness and branding you build?
Take a look at which vendors you are buying products or services from. Take some time this week to speak with them to get to know them better and to look for ways to increase awareness of their services and to expand awareness of your services at the same time.
I recommend providing incentives based on performance for your vendors so you have a true partnership with them.
Schedule a meeting with each vendor and discuss creating an incentive based on performance. Co-create a generous incentive plan with them and allow them to give their input regarding this plan. Once you agree on the incentive plan then set up a tracking system so you can both be checking on performance and being certain the vendor is compensated correctly. I also suggest you go beyond the initial sale and also give away some profits from sales after the first sale. Pay the vendors on back-end sales as well.
Make time this week to chat with each vendor and discuss the incentive plan that works for them to create a win for them, a win for you and a win for both of your customers.
Vendors Can Bring You Clients
How much time and energy do you spend creating deep relationships with vendors? If you are like most business owners you ignore your vendors and focus on bringing in more leads and also on current clients. This is a mistake. Vendors can help increase the awareness of your company to prospective clients. Anyone you purchase products and services from is a vendor. I recommend you spend some time really connecting with your vendors and making sure you can help them by referring business to them and also being certain they really know what your business is and does so they can also encourage brand awareness for you.
I have found hidden opportunities with vendors. I first look for ways that I can add value to their business and help them grow. Then I also ask them if they would do the same for me. I have offered them incentives (if appropriate) as well.
This week, approach all the vendors you have and ask them who you can refer to them and how you can help them grow. Then, ask them if they would also be willing to help you grow your business and if they would like a performance based incentive for doing so. If yes, ask them what would work for them and co-create their incentive plan. Then develop a clear plan that you both can track. I highly recommend you give them some form of commission on all sales and not just the initial sale so that you get continued sales. I have given away almost all profit from my first sale to my vendors as I am willing to sell back end products and services and keep more there. Vendors have loved this idea. In this way I am encouraging future sales and I can upsell more profitable products and services as well as cross-sell.
As you get to know your vendors you will see that they are integral to your business success. Share your talents with them and have them share their capabilities and connections and this will be a true win-win.
Putting together an incentive plan like this 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.