Tip of the Week: Effectively Manage Your Vendor Relationships

Running a business is like juggling flaming torches while riding a unicycle, blindfolded. You’ve got employees, customers, operations, and, of course, vendors. Vendors keep the gears turning, but if you’re not careful, those relationships can turn into a never-ending headache that eats up your time, money, and possibly your sanity. So how do you make sure your vendors work for you, rather than the other way around? Here’s how to get the most out of them without losing your mind.

Choose Vendors Wisely

Going with the cheapest option is always tempting. Who doesn’t love a good deal? If your bargain-bin vendor delivers late, however, or sends you the wrong stuff, or ends up not being as reliable as you need them to be, you’re not saving money; you’re actually funding your own frustration. Instead of just looking at price tags, check for reliability, customer service, and whether they can actually keep up with your business. A dependable vendor who costs a little more is worth every penny compared to one that disappears when you need them most.

Communicate Clearly and Often

Vendors aren’t psychic. If you expect top-quality service, clear deadlines, and a decent response time, you have to say so. Don’t assume they know what you want; spell it out. Lay out pricing expectations, deadlines, and any weird quirks your business might have upfront. Also, don’t just reach out when things go wrong. A little regular check-in can go a long way toward keeping things running smoothly.

Negotiate Your Rates

That price they gave you is not carved in stone. Many vendors expect you to negotiate, so go ahead and ask for a better deal. Maybe they’ll knock off a few bucks for bulk orders or give you a better payment schedule. In the worst-case scenario, all they can do is say no, and you move on, but knowing that vendors need your business, they won’t always say no. You can save a significant amount of money by negotiating.

Pay on Time

You know the way to be a vendor’s favorite customer? Pay your invoices when you’re supposed to.

Vendors love customers who don’t make them chase down payments. In return, they’ll likely prioritize your orders, throw in discounts, and actually pick up the phone when you call. Pay late too often, and you might find yourself at the bottom of their to-do list.

Always Have a Backup Plan

Even the best vendor relationships can go sideways. Maybe their supply chain crumbles, they jack up prices overnight, or their customer service takes a nosedive. Whatever the reason, always have a contingency plan: another vendor in your back pocket so you’re not scrambling when things go south.

Know When to Walk Away

If a vendor is consistently dropping the ball, making your life miserable, or just not delivering what you need, it’s time to cut the cord. A vendor relationship should be beneficial, not a full-time stress generator. If they’re more trouble than they’re worth, walk away. Your business is too important to too many people to waste time and money on a bad relationship.

At iTSTL, we make vendor management a whole lot easier. If dealing with technology vendors feels like herding cats, give us a call at (314)828-1234. We look forward to working with you.