Talk With Vendors – Get their understanding of future demand. – Step 2

Once we find out the demands and expectations of our customers, we need to understand whether our vendors will be able to help us meet those expectations. Many of the companies our vendors represent place a lot of money and time into market research. We should be able to take advantage of this by developing relationships with our vendors to find out what their company perspectives are on the market expectations. Some of the information we can gather that directly impact our businesses and our customers are pricing trends, product enhancements, new product development and marketing campaigns.

Developing a relationship with our vendors is extremely important. Essential to developing this relationship is communicating. Many of us realize they are sales people and tend not to return calls, or to avoid being present when they come to visit. Even doctors oftentimes schedule time to meet with pharmaceutical representatives. The reasoning behind this is to find out what changes are in the works, shifts in the marketplace and what competitors are considering.  The better the relationship, oftentimes, the earlier “heads-up” you have. What a market advantage this will give you over your competition!

What information will they provide to you? Price change is one of the most impactful on your business. If there is a “rumor” pricing will go up or go down. You have the opportunity to adjust accordingly. Time will be on your side and when it comes to money, time is important. Let’s say pricing is scheduled to increase. This gives you the opportunity to review your expenses and determine whether it is feasible to maintain your existing pricing or to determine how much of an increase in pricing you need to pass to the customer. If pricing is to decrease, this provides a great chance to think how you will use the additional funds available to you. Will you run a sale? Reduce pricing? Give raises to employees? Keep the additional profit margins? Most important, this time will allow you to ponder what your competition will do.

What will the company do with products? Are they introducing an improved product? Is the market demanding a change in a product? Will it match the demands of your customers? Is a completely new product in the works that may give you this competitive edge? Getting the inside track on this type of information, allows you to plan and position yourself in a position to propel your business forward.  Remember, salespeople can more freely discuss information than share it via email!  Face to face conversations give you the ability ask probing questions or better interpret the any non-verbal cues.

Vendors have a goal….move product! This is their sole goal, to move product! The companies your vendors represent will oftentimes provide resources to help you sell their products. Are some of these public? Absolutely! Are there oftentimes reserved budgets and resources? Absolutely! These reserves are negotiated between your vendor and his/her company. It may come in the form of a discount, a sponsored ad, a discount for printing, introducing a new product first, or many other ways. Your relationship, eagerness to represent their product, and ability to ask for it will be the determining factors as to whether or not you will receive it or not.

So when propelling your business into the next growth spurt, or preparing your business for an economic turn-around, speak to your vendor. Developing relationships are a crucial, and I cannot stress enough their importance in attaining your goals. Therefore this week’s assignment is to make sure you are around when your vendors come by, you return their calls and/or maybe drop an email to say hello. Begin developing these relationships. We’ll be working on step three in preparing your business for economic recovery or business growth!

See you next week!