Suppliers as referrers and customers
We’re all suppliers and customers at different points in the day.
When we’re the customer, we probably all want something similar from our suppliers. A good product or service, provided by good people when you need it at a competitive price. However, in pursuit of this it is crucial that you don’t overlook the quality of relationships with your suppliers as part of your ongoing
‘reputation management’.
For example, if you drive your supplier really hard on price and lead times, they will get to a point where they supply to you almost grudgingly. A recent example from the BBC’s Hugh’s War on Waste programme encapsulates this perfectly. A parsnip grower in Norfolk eventually took the decision to close the business rather than continue working under the tough terms and conditions imposed by its customer, one of the big four supermarkets. To the outside world, it was undoubtedly an eye opener to see the kind of business practices going on behind closed doors in the retail market – not good in this case for the reputation of the retailer concerned.
But even without the TV exposure, it would be surprising if the farmer concerned has anything positive to say about the supermarket that he blamed for putting him out of business. Doubtful the family will ever do their weekly grocery shopping there! But it will go way beyond the immediate family – will their extended family members and friends choose a different supermarket too?
This kind of thing could happen to any business. If you ask a supplier to bend over backwards to help you grow sales or win a new contract, it’s vital that you give them the recognition they deserve – and that doesn’t mean paying over the odds. Even if you don’t give them the business, at least thank them for their efforts! Your suppliers could be talking to your next prospect – think about how you would like them to introduce your business.