How Well Do You Know Your Vendors? 

One Method to Never get burned again.

It’s imperative to build relationships with your vendors and those around you who can bring in new customers/clients and increase awareness of your company branding. That relationship cannot just be transactional. It needs to be built on trust and have value going both directions.

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

Building relationships with vendors can be challenging.  You never know if you’re going to get burned. Creating a plan based on value to them is essential for building that trust. 

Look for great ways to offer your vendors rewards for helping grow your business, and everyone wins. One way you can do this by offering performance-based incentives that are much larger than their standard charges.

Here’s the step-by-step process to putting together a partnership with a vendor:

  1. Approach all the vendors you work with and offer an incentive-based on performance. 
  2. Put the generous incentive plan together from their perspective, even take suggestions.
  3. Develop a transparent, concise, and easy to track incentive plan; this will increase competition between vendors and, therefore, higher performance levels.
  4. 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
  5. 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 an incentive plan that entices them to be part of your business. Use their talents, capabilities, and connections, and you’ll both be winners.

Putting together an incentive plan doesn’t have to be a complicated process. Use our GUIDED TOUR to develop some great ideas and put your incentive plan together for maximum results.

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