Building a Strong Vendor Base

By mary | Published June 2, 2009

You are only as strong as your weakest link.  We should all ask ourselves regularly, “Where is my business the weakest”?  If that answer is your vendor base, then you have some work to do. Understanding that the vendors you surround your business with, not only provide a strong support system but also help define your business are key to success.   In my experience it is important for any business that offers products or services to have 4 types of vendors.

  • KEY VENDORS
    These are the vendors that you work with often and provide the key items that you use or ship every day.  They should be dependable and big enough to handle your needs.  You should develop a good relationship and have a contact person that knows you.
  • Secondary or Back Up Vendors
    Vendors that have products that are the same or similar to your key items.  You must always have a list of back up vendors.  You never know when an item will go out of stock, prices change or your needs start to exceed what your Key Vendors can provide.  Sometimes scrambling to fill orders is unavoidable due to market conditions, but having a list of secondary vendors will make a big difference.
  • New Product Vendors
    Add new products often.  Test out new products and services on a regular basis.  This will keep your business fresh and help generate new sales.  Your established customer base will look for new products and ideas to stay interested.  Many new product vendors will become Key Vendors.
  • Closeout or Special Deal Vendors
    Offer specials from time to time.  Don’t be afraid to buy closeouts.  These are vendors that you may never buy from again, but offer the right product at the right time.  Don’t buy from companies you know nothing about.  Stick to the larger established ones that usually offer closeouts with good value as well as quality.  Remember that it is only a good deal if it is good quality at a good price. Your customers will love knowing you are passing the value on to them.

    Linda Lenzi is the owner of My Princess Party To Go, “Moms in the business of helping Moms cut the stress and cost of hosting the perfect Princess Party!” You can visit her website at www.myprincesspartytogo.com.


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