How Well Do You Know Your Vendors?

Posted by Stephen Floyd

It’s extremely important to build relationships with your vendors. The people you work directly with in support of your products and services are really the ones with the most to gain when you find success. By taking the time to get to know them, you’ll uncover a whole host of opportunities.

Look for great ways to offer your vendors rewards for helping grow your business. One of ways you can do this is by offering performance based incentives that are much larger than their normal charges.

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

  1. Approach 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 clear, concise, and easy to track incentive plan, this will increase competition between vendors and resulting in 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:
  5. Future sales
  6. Upselling better and more profitable products/services
  7. Cross-selling additional products

Think of all the vendors with which you work and the creative ways you can put together an incentive plan that entices them to be part of your business. By using their talents, capabilities, and connections you’ll both be winners.

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

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