6 tips to a great relationship with your suppliers
As a small business owner for over two decades, Angela Vithoulkas has dealt with many suppliers. Here are some of her top tips on how to successfully work with them.
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Angela Vithoulkas is a small business expert, owner of VIVO Café, and 2007 NSW Telstra Business Women’s Owner of the Year. Angela shares her knowledge through articles, blogs, keynote presentations and her new Small Business Radio Show, Angela’s Business Mix. angelavithoulkas.com.au
Are suppliers important to your business? Well, they're as important as you are, actually.
In the corporate world, they are referred to as stakeholders. In the small business world, they are often considered a nuisance, time wasters and businesses that don’t understand your needs. There have been many moments for me when I have hung up from a supplier and then spent several minutes seriously damaging the handset. It’s not a good look.
The error begins by identifying delivery people as your supplier - they are not. A courier or truck driver, installer or technicians are not your actual supplier. Yes, they represent them. Yes, they usually bring the goods or services that you have ordered. They are not however, responsible for the relationship.
This is where it can all change for your business. Suppliers can impact on your business significantly, both positively and negatively. You should get to know them, make time for them. They are not your enemy. In fact they can be part of your army, if you recruit the right ones. Here is some advice from the trenches:
1. Remember that you are a customer to your supplier. It’s OK to be demanding and fussy. They may not like it, but your customers will benefit.
2. Your business success means the same for your supplier, the better your performance, the better it is for them.
3. Not all suppliers get it. Get rid of the ones that make it hard or make you angry.
4. When you are stuck, ask. Ask your supplier for some ideas on how to market or promote their products in your business. You will be surprised by how excited they can get and how helpful they will be.
5. Be loyal. I have been doing business with some of my suppliers for many years. They constantly find new ways of keeping me happy and I reward this with loyalty.
6. Pay promptly. I know many business managers will be having a nervous breakdown over this one, but it’s a powerful negotiating tool. We all like to get paid quickly and regularly, including your suppliers. I find service, price and quality is often influenced by consistent payment terms.
Small business doesn’t mean small influence. You don’t need to be a national chain to get a discount from your supplier, you just need to ask and listen. They may not be able to give you exactly what you want, but before you dismiss them, ask what they are prepared to do. I have a beverage supplier who couldn’t give me a dollar discount on product but could give me free product on volume, which brought down the unit price.
Everybody’s happy when everybody gets something. Deals that are out of balance will inevitably lead to another issue. Think of it as small business karma. It hardly sounds like cutthroat business dealings, but the goal shouldn’t be to eliminate your suppliers. Leave that sentiment for your competitors.