Vendors and suppliers provide a critical service for any business. In commercial real estate, this service plays a critical role in keeping a commercial building or property up and running, which is your business as an owner. Because of the critical role your vendors play in keeping your business running, it’s important to build (and maintain) positive relationships with each of them. After all, they really are your support system.
So how exactly do commercial property owners build positive relationships with their vendors and suppliers? Well, you’ve come to the right place because we’ve created a ‘How-to’ Guide just for you.
Developing Relationships
Relationships matter. So much so that it’s vital to develop positive vendor and supplier relationships continuously if you want to succeed in the world of commercial real estate – which you obviously do. These partnerships will only strengthen your business and allow you to focus on your core competencies.
The foundation for these relationships includes six key components:
1. Exchange Expectations and Goals
It’s absolutely critical at the start of any vendor relationship to communicate your expectations and business goals honestly and thoroughly. When a vendor understands your specific needs and objectives, this allows them to create the necessary internal work system needed to successfully meet your overall requirements. On the other hand, the vendor should also share their intentions and needs clearly to ensure you’re both on the same page. Building a positive relationship requires both parties to understand what each one brings to the partnership from the get-go.
2. Put It In Writing
We can’t stress this one enough. When establishing a vendor/supplier relationship make sure to put everything (we mean everything) in writing. Why? Well, because operating on a handshake or verbal communications is far too risky for your business no matter how well-intentioned both parties are – it really is that simple. Doing so will help you avoid misunderstandings or miscommunications, which can end up being costly in more ways than one.
3. Work for Mutual Benefit
Vendor and supplier relationships are a delicate dance between your business’s best interests and the interests of your vendors and suppliers. However, one thing is certain: all parties need to receive mutual benefit from the partnership. Without this, the relationship will be difficult to not only build, but maintain, because the incentives to stick around are lacking. A business relationship based on mutual trust and reliability is in the interest of everyone, keeps the morale high and is extremely important when times get tough. You only get what you give, right?
4. Communicate, Communicate, Communicate
An effective business relationship can’t be established without clear and frequent communication. Because of this, checking in with your vendors and suppliers regularly to ensure both parties are on the same page is crucial. In addition, it’s important to note that you should maintain communication even when problems arise so that they can be given the chance to address any issues promptly. The more you make an effort to collaborate, the more likely vendors will stick with you during challenging times. Remember, this partnership should always be a two-way street.
5. Provide Lead Time
Additionally, it’s important to respect your vendors and suppliers time and resources because they are just as precious as yours. Keep your vendors in the loop by informing them ahead of time about new business goals, projects or tasks. Delays on your end or last- minute alterations can affect their profit margins and strain the relationship. Keeping your vendors and suppliers up-to-date demonstrates that you not only value your relationship with them but also gives them the opportunity to suggest an appropriate execution plan to make sure they are prepared to tackle the task or project head on.
6. Pay Promptly
You will be far more likely to build trust with vendors if you respect the conditions that they have set. Be sure to consistently pay your bills fully and on time, so that your vendors and suppliers see that they can rely on you and that you respect their processes. Sticking to their guidelines means that if you ever need a favor from them in the future — for example, a rush order or different payment terms — they will be more likely to accommodate.
Strive to Build Lasting Relationships
As an owner, your vendors and suppliers are unquestionably a huge part of your success — or lack thereof. Because of this, cultivating positive relationships with them is key in keeping your commercial property operating. Remember that all of these components must be present because they go hand in hand and allow the relationship to be productive rather than a chore.
