How important is it to build good relationships with your suppliers?

A great deal of importance / emphasis is placed on the customer side of business, and yes the customer of course is very important! On the flip side not much is said or emphasized about the importance of the supplier. And most importantly GOOD suppliers and service providers!

If you’re a business owner, your goods and / or service providers are unquestionably a part of your success, or sometimes a lack thereof. So choosing THE BEST ones and fostering good lasting relationships with them are absolutely KEY ingredients in keeping your customers happy and your bottom line healthy. There are some critical factors you need to pay attention to when choosing and dealing with your suppliers.

Work toward a Mutual Benefit

A really good supplier can guide you toward the best selling products and services, or perhaps those with the highest profit potential, thereby INCREASING YOUR sales. If you build sustainable, lasting relationships with suppliers that are also profitable for them, they are more likely to work in a way that makes sure your business does well too. Rather than risk losing your business, they will most  likely come to your aid if your customers make difficult demands. A relationship based on mutual trust and reliability is in everyone’s interest.

It’s also very important to bear in mind that, just like you, suppliers are in the business of making money. So if you give them a hard time with their accounts, ask them to continuously discount their goods and/or services, or don’t pay them timeously, they may decide to stop working with you, just as you might decide to break it off with a client that poses too many headaches for you.

Also realise that if you’re new to a relationship with a supplier, it’s unrealistic to expect the same level of attention they give to their current loyal customers. As your relationship develops over time and you build a mutually beneficial working relationship, you’ll find yourself on the receiving end of their best attention and good will.

Price Isn`t Everything

Price is important…however….when negotiating with suppliers, price should never be the sole determining factor, because a low price is worthless to no use to you in the long run if your supplier doesn’t deliver on time, delivers low-quality goods and/or services. In addition to price, important factors you should consider include delivery efficiency, quality and maintenance of goods and services and any extra services they may offer.

The bottom-line : GOOD suppliers that value GOOD customers and visa versa ensure mutual success!