Getting the Most For Your Money:
Tapping Into The Resources of Your Supplier

It doesn't matter if you're purchasing plant materials, or irrigation supplies. The history of commerce reveals that the forces behind "I'll scratch your back, you scratch mine" can be powerful.

Let's face the fact that business is done between people, and people will often work the hardest for those that are working with them, not against them. There's more to just "price" in every business relationship.

You can help your business grow by learning to take full advantage of the relationship you have with your current suppliers. Let's take a walk together through the benefits of having a synergistic relationship with your supplier:

* Reduced costs over the course of a relationship - Whether you realize it or not, the longer you do business with a supplier, the lower your total costs of doing business becomes. Contractors today are becoming much more efficient allocating their overhead on projects. If you were to allocate your overhead based on the relationships you have with suppliers you would discover that having fewer suppliers is better than having multiple suppliers. Why?

* Your supplier knows you and your business - The better your supplier knows you, your purchasing history, the particular needs of your business, the faster your service will be. After a period of time, your supplier will begin to anticipate your needs for you. Your supplier knows where to deliver your products. They know how you pay your bills. You know how their system works, and you know how to do everything from reading their statements and invoices. Suppose you need additional financing for your business. Does your supplier know of anyone? What if you needed help and tips in marketing and advertising your business. Does your supplier know of anybody that can help you? The better your relationship is with your supplier, the more you'll find that a supplier can help your business grow in a thousand tiny little ways, all of which add up to a lower total cost of procurement for the products and services your business needs.

* There's Hidden Services In Every Supplier - Some of the best services your supplier can provide to you are hidden. They simply are not advertised. It's the people they employ. It's basic human nature that the employees of your supplier will work harder for you than most of your competition, if that employee knows you appreciate the hard work they'll put in for you. Employees of your supplier can spend their time (not yours) digging up answers to your questions. Investigating problems or situations that affect both of your businesses. There are things going on in your marketplace that your supplier knows about which can save your business time, maybe even give you a competitive advantage. The better your relationship with your supplier, the more likely it is that you'll know what's going on before the majority of your competitors.

* There's a large depth of knowledge in your local supplier - The best suppliers are the most knowledgeable. They see and hear about all of the problems that are going on out in the field. The have the direct link back to the manufacturer for solutions to problems you're facing. The larger suppliers have more people on staff with specialized talents that your business can leverage, often all you have to do is ask.

* Your local supplier has a better sense of what's going on in your local market. Do you talk business with your supplier to see how they see the business climate? Are they up? Down? What are they hearing? How does this compare to your business? Paul Hunter of Hunter Industries of San Marcos, California told me last fall that in his recent trips across the United States where he met with contractors, architects, and suppliers, that he found the greatest depth of knowledge about markets, technical knowledge and abilities were found at the local suppliers. The next time you find yourself just "beating up your supplier for price" think about all of the little things you're negotiating away in your relationship whether or not either of you realize it. It's your supplier's responsibility to offer you competitive pricing. Everybody benefits and grows if everyone is able to earn a fair and reasonable profit for their products and services. If you strip "the fair and reasonable" out of the equation, everyone begins to lose.

Find the best and strongest supplier in your market, and learn to avail yourself of every idea, service, resource, contact, and more that they have at their disposal. Make it a priority for your business to work that relationship hard so that your business has the most to gain.

In the final analysis you'll discover that your supplier becomes a de facto employee of your business, working hard to satisfy your needs, so you can be successful.