But if you have strong relationships with valuable vendors, they can help ensure that you serve your customers well, maintain vital cash flow, and stay informed about your competition and what's going on across your industry.
For example, if you own a small manufacturing company, your vendor is likely in the know about the strategies and struggles of your competitors and has the power to provide discounts or favorable payment terms, among other value-added benefits. But he isn't likely to provide all that information and perks to every customer; in fact, he may not even realize that his intel and connections are that valuable to you.
It takes effort from you, the business owner, to build a relationship with your vendor that can offer expanded services or other benefits to build your business.
When you place a new order or sign a new contract with a vendor, you may be able to negotiate for payment terms that suit you, but once the goods are delivered and the invoice is received, you need to pay the bill. Don't try to renegotiate payment terms at that point; just pay on time. If you've developed a reputation with your vendor for being a reliable payer, you'll be more likely to negotiate for expanded services.
2. Provide plenty of lead time. Do you always place orders at the last minute, making vendors work late hours and scramble to fill the orders? If so, you're not developing a positive relationship with your vendors. While last-minute orders may sometimes be unavoidable, do your best not to make them habitual. Instead, work to provide plenty of lead time to your vendors and communicate with them about your future needs so they can plan ahead.
This approach demonstrates a respect for your vendor's business and will help generate goodwill between your business and your vendor. That goodwill can come in handy when you're ready to negotiate for expanded services.
3. Help vendors grow their business. Every businessperson appreciates a partner who is interested in helping grow their business—including your vendors. You can help boost your vendor's business by looking for ways to expand the goods or services you purchase from them, and you can also introduce them to others who may be interested in their products or services.
When vendors see that you are interested in truly partnering with them by making connections or helping to grow their business, they will be more interested in providing extra services to help grow your business.
4. Get to know vendors personally. Take time to visit your suppliers at their own workplaces occasionally, and when possible, take them up on their offers to take you out for dinner or a game of golf.
Take an interest in your vendor as a person and work to develop a genuine relationship. When your vendor feels like he or she knows you and has a personal relationship with you, your requests for expanded services will feel like simply helping a friend.