Are Your Vendors Making or Breaking Your Business?

It’s often the company that you keep that can determine the success of your business. Align with the wrong vendor and your own reputation could be in jeopardy. Select a mediocre company and you may slide by, but is that enough? With the right partnerships, you discover those who can truly help to elevate your business to the next level.

Gold Medal Products Co. was one of a trio of companies recognized in LEAD (a publication of The Leading Organizations of Greater Cincinnati) for its business relationships. Gold Medal CFO, Craig Hudson, explains how insurance agency RiskSOURCE earned his trust. “With insurance agents, the business relationship is important, having someone who isn’t just an insurance expert but takes the time to understand what we do.” Gold Medal also practices the same standards in serving our customers by developing mutually beneficial relationships.

How can you foster these types of positive associations? Here are 5 key questions you should ask when evaluating prospective vendors. (It’s also helpful for taking stock to make sure your business measures up as a quality vendor.)

1. Do I know what I want? First, make sure you know your own needs and expectations. Create a checklist of what qualities are important to you. It’s also wise to know what you don’t want. When you make yourself aware of red flags up front, it can save you from headaches in the long run.
2. Who’s in my network? Make the most of your network. Getting a referral is one of the most reliable ways to ensure you’re considering a quality vendor. Plus, they can also help you to avoid companies who are less than worthy.
3. Do they ask or tell? Does the potential vendor have a service mentality or are they only interested in “getting the sale?” An attentive company will show that they’re invested in your success by asking the right questions about your business, rather than just reciting canned features and benefits.
4. Are they willing to give you references? Word of mouth is a powerful testimonial for a business. Smart companies will realize their current happy customers can be their greatest asset. Be sure to ask for references to get an honest perspective. If there’s hesitation, proceed with caution.
5. How does price compare to value? Too often, businesses decide to shop on price, thinking that the lowest cost is the most important factor. Unfortunately, you often get what you pay for. Be sure to consider aspects like customer service, warranties, terms of business and other products or services that add value.