Do You Know Your Vendors Well Enough to Create a Vendor Incentive Program?
It’s essential to build relationships with your vendors. The vendors in your local market can bring in new customers/clients and increase awareness of your company branding. This can easily be done with a vendor incentive program.
The people you work directly with on your products and services are those with the most to gain from your growth and success.
By taking the time to get to know vendors, you’ll find a whole host of opportunities you didn’t realize were there.
When you create a number of ways to offer your vendors rewards for helping grow your business, everyone wins.
One of the ways you can do this is by offering performance-based incentives that are much larger than your vendor’s standard charges.
Here’s the step-by-step process for putting together a partnership with a vendor:
- Approach all the vendors you work with and offer an incentive-based on performance.
- Put a generous incentive plan together from their perspective, even take suggestions.
- Develop a clear, concise, and easy to track incentive plan; this will increase competition between vendors and, therefore create higher performance levels.
- Encourage subsequent sales instead of focusing only on the initial sale. By doing this, you can give away more of the profit from the initial transaction to your vendors and make higher profits off the back end products.
- Future sales
- Upsell better and more profitable products/services
- Cross-sell to additional products
Create an incentive plan that’s irresistible to your vendors by offering generous, exclusive compensation.
Think of all the vendors you work with and creative ways you can put together a vendor incentive plan that entices them to be part of your business. Use their talents, capabilities, and connections; you’ll both be winners.