How Well Do You Know Your Vendors?

Relationship building is one of the most fundamental ways to develop your business. Building relationships with your vendors and those around you can potentially attract new customers and/or clients while increasing awareness of your company’s branding.

The people with whom you work directly on your products and services are the ones who will benefit the most from your success. By getting to know them, you’ll find many opportunities you didn’t realize were there.

Don’t just reward your vendors; inspire them. By offering performance-based incentives that exceed their usual charges, you acknowledge their efforts and motivate them to continue contributing to your business’s growth.

A step-by-step process for creating a partnership with a vendor:

Approach all the vendors you do business with and offer an incentive that is based on performance;
Put a generous incentive plan together from your vendor’s perspective that even takes their suggestions into account;
Develop a clear, concise, and easy-to-track incentive plan. This will increase competition between vendors and ultimately yield higher performance levels;
Promote subsequent sales rather than focusing solely on the initial sale. By doing this, you can allocate more of the profit from the initial sale to your vendors and earn higher profits off the back-end products. Consider the following:

Boosting future sales;
Upselling better quality and more profitable products and/or services;
Cross-selling additional products.
Create an irresistible incentive plan for your vendors by offering generous, exclusive compensation.

Think of all the vendors you work with and the creative ways you can create an incentive plan that entices them to be part of your business. Find innovative ways to use their talents and connections, and you will reap the rewards.

Creating an incentive plan doesn’t have to be complicated. Contact me at mshew@profitpathcoach.com or 1(850)377.0716 for assistance in developing your incentive plan for maximum results.