Carefully selecting and managing vendors is an essential function of running any small business. The success of your business often depends on the quality and reliability of your suppliers. Building trust and solid relationships with your vendors is crucial for long-term success. When choosing a supplier, it is important to consider how the business relationship will fare both in the short-term and for the long haul.
How to Choose the Right Supplier
There are several factors to consider when deciding which vendor to choose. Let's explore them:
Cost
Cost is one of the main factors that business owners consider. However, it is important to look beyond just the service and product costs. The true cost of partnering with a vendor includes factors such as the impact on your bottom line, the level of trust you have in the vendor, and the reputation of the company. It is worth examining these factors before making a decision.
Expertise
Vendor expertise is another important factor to consider. Smart suppliers stay up-to-date with the latest trends in their industry and can bring valuable knowledge and insights to your business. It is essential to vet suppliers who offer the latest, most advanced products and services, and have invested in well-trained employees.
Communication
Effective communication is key to a successful vendor relationship. Vendors should communicate clearly, regularly, and honestly, without being too aggressive. Transparency and excellent communication, whether the news is good, bad, or indifferent, should be expected on a consistent basis.
Character
A company's character is also an important consideration when choosing vendors. It is important to assess a vendor's reputation by conducting online searches and reading reviews. Look for suppliers with a solid history of positive reviews and business longevity. More importantly, look for vendors that have a track record of "doing the right thing."
Measuring Success
To make the best decision when choosing a vendor, it is important to define your objectives, milestones, and expectations. While cost is an important factor, reliability and owner availability should also be considered. Researching multiple vendors and asking questions can help narrow down the options. Professional referrals can also be valuable in finding vendors with good local reputations.
Location
Location is another factor to consider. Having a vendor located nearby can reduce shipping costs and make face-to-face meetings more convenient.
You've Selected Your Vendor, Now What?
Open the Lines of Communication
Once a vendor is selected, it is important to establish good communication and ensure that both parties are clear on the contract, price, and timeline. Monitoring the vendor's performance, especially in the beginning stages of the relationship, is crucial to ensure that the terms of the contract are being upheld.
Evaluating Performance
After completing a project with a vendor, it is important to conduct a post-mortem evaluation. Asking questions such as what made you select the vendor in the first place, how flexible the vendor was with regard to process or changes, and if there were any hiccups or unexpected costs can help assess the vendor's performance and determine if they would be a good fit for future projects.
Choosing vendors is an integral part of a business's success. Vendors can become partners and help small businesses grow into larger ones. Selecting reliable and stable vendors should be a part of every business's growth plan. By carefully considering factors such as cost, vendor expertise, communication, and reputation, you can make informed decisions that will benefit your business in the long run.
As a vendor ourselves, we at High Level Marketing take pride in exceeding expectations and going above and beyond for each client. Our goal is to educate and empower small business owners to make the best marketing decisions that will help grow their businesses. We develop effective digital marketing campaigns that drive traffic and convert leads. Don't lose leads to your competitors. Let's talk about your business and how we can help you achieve your goals.
Gameplan guidelines
A checklist for selecting the right vendor:
Define your objectives, milestones, and expectations
Many growing businesses select vendors based on cost alone because every dollar counts. However, consider other aspects like reliability and owner availability when making your decision.
Do your research
Collect information on several vendors and narrow the vendor field by asking questions. Does their business have a professional website? Do their company values align with yours? Does a human answer the phone when you call?
Get referrals
Professional referrals can steer you away from trouble and direct you to companies with good local reputations.
Location, location, location
Stop by the vendor’s place of business. Shipping costs drop and face-to-face meetings are more convenient when vendors are local.
Communication
Establish good communication - Keep the lines of communication open and ensure that the contract, price and timeline work for both parties. You should always know exactly what you’re paying for.
Monitor performance
This is particularly important in the beginning stages of the relationship. Until the working relationship is well-established, monitor the vendor’s performance to make sure it upholds the terms of the contract.
Productive post-mortem
Ask these questions before hiring again
- What did you like best about working with the vendor?
- What made you select them in the first place?
- How flexible was the vendor with regard to process or changes?
- Did they communicate status and risks in a timely manner?
- Were there any hiccups on the project or things to be aware of or manage closely?
- Are there any individuals that worked on the project that you wouldn’t choose to work with in the future?
- Did the vendor go above and beyond in any way?
- Were there any unforeseen benefits in working with them?
- Were there any hidden or surprise costs either before or after the project?
- What are the vendor’s biggest strengths and weaknesses?
- Would use you them again for a future project?
Choosing vendors is an important part of your business’s success. Vendors can turn into partners, and help small businesses grow into big businesses. If you haven’t already, make selecting reliable and stable vendors part of your overall growth plan. Your business will thank you for it!
As a ‘vendor’ ourselves, we take pride in exceeding expectations, and strive to go above and beyond for each client every day. To learn more about High Level Marketing’s digital marketing packages, contact us today!
About High Level Marketing
At High Level Marketing, the primary goal behind everything we do is educating and empowering small business owners like you to understand your options in an effort to make the best marketing decisions that will help grow your business. We develop effective digital marketing campaigns that drive traffic and convert leads. Stop losing leads to your competitors…
Let's Talk About Your Business!
This blog post was originally written in September of 2018 and was revised on November 3, 2023.
