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Choosing a supplier often goes like this: you seek advice from two or three firms and they explain how they work. They may seem to be a good option, but these conversations often leave you wondering whether you are making the right decision.
You may feel you would like more information, but have not these firms told you adequate?
Finding a supplier, especially in an unfamiliar area of interest and independent service business, may be difficult. These few conversations do not give the full picture of the situation and may result in a waste of time and money.
When my video editing company decided to scale up, we realized we wanted more help and additional vendors to maintain up with demand. That’s why we have developed a structured system that helps us select suppliers.
This approach turned out to be very helpful, allowing us to decide on the right partners and build long-term relationships. The two suppliers we chosen using this technique have been working with us for years.
Let me walk you thru this process step by step.
1. Find 50 firms that may provide the services you would like
The first step in our process is to discover 50 firms that may meet our requirements. For example, if we are looking for social media management or content creation services, we’d specifically search for 50 agencies in that field. We call it the “Rule of 50.” Then we approach them with a specific task and check whether or not they can handle it.
While not every company specializes in our exact needs, the answers we receive help us higher understand the market. They allow us to judge what is realistic, improve our task, and learn what the industry typically offers. This method also clarifies our own needs and shows whether our request is practical.
Although it takes time to pick out and analyze 50 firms, we have found that this number is ideal for assessing the market and achieving the best results. After collecting the answers, we proceed to the interview stage with candidates who can cope with the task.
2. During the interview, keep in mind that you are the buyer
This is especially necessary if your organization is also a service provider. It’s easy to fall into the habit of taking the initiative and providing the best experience possible, similar to we do with our own clients. However, in this case it is necessary to vary the way of considering. You’re the one who judges and makes the decision, so leave room for suppliers to indicate what they’re able to.
Note the visible green flags. Do they go a step further? Do they contact you or send you a thoughtful summary after the interview? One good sign is that they focus on your needs quite than continually talking about how great they are. The ideal salesperson might be attentive to you and show they are adaptable.
Another key green flag is their ability to obviously explain their services, especially if you are unfamiliar with the area of interest. The best suppliers are capable of describe their business in easy and comprehensible words, not jargon. This demonstrates not only their expertise, but also their ability to speak well. If they’ll simplify complex concepts for you, it’s a good sign that they know their field well and can meet your needs without overcomplicating things.
3. Don’t be afraid to approach vendors who appear to be out of your budget
When you search for suppliers, you could come across a team or business owner who you immediately connect with, knowing they are the perfect fit for your business. You will probably want to pay all of them the money in the world, but sometimes it just is not in your budget.
Don’t dismiss them too quickly, though, and definitely don’t hesitate to proceed the conversation. These providers are often leaders in their field and can offer helpful expertise. They can share their knowledge and high standards with you, which can provide help to understand the market and its leading players. Even if you may’t afford their full-time services straight away, there are still ways to get around this problem.
For example, you may negotiate various terms that are helpful to each parties. They may fit with you part-time, perhaps 80 hours a month as an alternative of 160, or at the same time as a consultant for just a few hours a week. Think creatively and be open to recent possibilities when it involves building relationships with these suppliers.
To sum up
Even though you are the one paying for the service, it is vital to keep in mind that working with suppliers still works each ways. If you wish suppliers to remain with you for a very long time and the partnership to be productive, focus on building a strategic relationship, not a vertical, transactional one.
For example, you may recommend them to other customers or refer them to your network. This will naturally make them more appreciative and, in many cases, more motivated to do their best work. Treating suppliers as valued partners, not only service providers, results in long, mutually helpful relationships.