How Well Do You Know Your Suppliers?

Relationship building is one of the most fundamental ways to develop your business. By building relationships with your suppliers and those around, you have the potential to bring in new customers and/or clients, while also increasing awareness of your company branding.

The people with whom you work directly on your products and services are the ones who will benefit the most from your success. By taking the time to get to know them, you’ll find a whole host of opportunities you didn’t realize were there.

Always look for great ways to offer your vendors rewards for helping grow your business and everyone wins. One of the ways you can accomplish this is by offering performance-based incentives that are much larger than their normal charges.

Here’s the step-by-step process to creating a partnership with a supplier:

  1. Approach all the suppliers you do business with and offer an incentive that is based on performance;
  2. Put a generous incentive plan together from your supplier’s perspective that even takes their suggestions into account;
  3. Develop a clear, concise and easy-to-track incentive plan. This will increase competition between suppliers and ultimately yield higher performance levels;
  4. Create an incentive plan that is irresistible to your suppliers by offering generous, exclusive compensation.
  5. Promote subsequent sales rather than focusing solely on the initial sale. By doing this you can allocate more of the profit from the initial sale to your suppliers and earn higher profits off the back end products. Consider the following:
    • Boosting future sales;
    • Up-selling better quality and more profitable products and/or services;
    • Cross-selling additional products.

Think of all the suppliers you work with and the creative ways you can put together an incentive plan that entices them to be part of your business. Find innovative ways to make use of their talents and connections and you will both reap the rewards.

Creating an incentive plan doesn’t have to be a complicated process. Reach out to me for assistance in developing your incentive plan for maximum results.

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