Finding Good Vendors: What to look for when building vendor relationships

Finding Good Vendors: What to look for when building vendor relationships

Vendors play a fundamental role in running a franchise business. They're essential partners to your success. You will need all kinds of supplies of products and services to keep the doors open, customers coming and going, and cash registers ringing. Finding the right vendors is critical.

Depending on how your franchisor handles vendor relationships, you may be able to choose some (or all) of your own partners as you open and grow your franchise business. These are critical relationships—usually under contract—and you want to make wise choices. You should make finding good vendors and developing relationships with them a priority as your business goes forward.

Here is a list of 6 tips that will help you make the right vendor choices:

  1. Do your homework. Research potential vendors for all of your business needs. If they are local businesses, make appointments to visit with them in person and take a look at their facilities/operations.
  2. Check references. Talk to other franchisees and business owners who work with the vendors you are considering. Does the vendor have a reputation for delivering what it promises?
  3. Discussion/Negotiation. After you've narrowed your vendor search, it's time to set up meetings with a company representative. Discuss the details—credit terms, return policies, pricing, billing, delivery, etc. Leave no stone unturned. You want to be clear upfront and well informed.
  4. Changes. Discuss how the vendor handles any changes in products, services, pricing, policies, or the manner in which products and services are delivered. You're looking for open and ongoing communication.
  5. Get the ball rolling. If you like what you see and you're ready to proceed, provide the vendor with your financial report and a credit application right off the bat. This will be meaningful to the vendor and help speed up the process of getting the relationship to work.
  6. Continued support. Most vendors offer monthly reports that indicate how things are going. You want regular communication and warnings of changes in the pipeline. 

Finally, complete all necessary paperwork for the new relationship (have your attorney look it over if so inclined), demand that products and services be delivered as scheduled, and pay your bills on time. If you do this, it could just be the start of a beautiful relationship.

Published: August 17th, 2018

Share this Feature

Recommended Reading:

Comments:

comments powered by Disqus
Firehouse Subs
SPONSORED CONTENT

FRANCHISE TOPICS

Featured Opportunities

la Madeleine
Things don't get much better than breakfast at la Madeleine--unless, of course, it's lunch or dinner.
Dickey's Barbecue Pit®
Since 1941 Dickey's Barbecue Pit® has been treating customers to great tasting barbecue and has become a restaurant icon in the process! Now you can...
Wienerschnitzel
Profitable. Unique. Different. Wienerschnitzel wants you to join our franchise family. Why? As a prominent franchise of over 50 years we OWN the...
Homewatch CareGivers
Homewatch CareGivers gives entrepreneurs a proven path to financial success as well as the opportunity to make a positive change in the world. We are...
Pearle Vision
Pearle Vision is one of the most recognizable, premium optical franchises, offering a proven business model in an industry with sustainable demand.

Multi-Unit Franchisee Magazine

The only publication dedicated exclusively to the hottest topic in franchising - Multi-Unit and Multi-Brand Franchisees.


Share This Page

Subscribe to Franchising Express

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2018.
All Rights Reserved.