The following advice on working with vendors comes from Bob Negen of Whizbang Training in Grand Haven.
Now is a great time to work hard at creating close and personal relationships with your vendors. Remember, their sales are down and their inventories are up, too.
Pick the vendors that are most important to your business and start working on those relationships. Talk to them openly about your business needs as well as theirs, then try to create some “win-win” situations for both of you. Here are some ideas:
- If they need immediate cash flow—ask for deeper than normal discounts if you pay in 15 days.
- If they want to maintain their margins—ask for longer extended payments if you pay full price.
- If they are carrying too much inventory—check on overstocks and ask for unbelievable deals (better than sale price) on these items if you also buy a certain amount of regular priced merchandise.
- Give them your projected stock needs if they give you priority allocation and shipping. They avoid over-manufacturing and you get all the merchandise you want before your competition does.
- Always let them know if your payment will be late so they can be proactive about their cash flow.
You and your vendors need each other in order to make it through the difficult times ahead. Start now to build your most important partnerships.
