When you're faced with choosing a new vendor, it's important to start the new relationship right. It's not always easy, but if you go into the selection process with the right mindset and priorities, it can help change your business for the better.
As a vendor ourselves, we know that the best relationships are those that work as a team. What qualities make for a solid partnership? With that in mind, we've outlined the top nine things to consider when switching vendors.
1. Referrals
Referrals are a great way to go to find high-quality vendors. Word of mouth can be a great starting point because it frames the relationship as just that: a partnership, a team relationship. Both parties are more likely to uphold their end of the deal when referred by a mutual acquaintance.
2. Industry reputation
You've probably heard that a man is only as good as his reputation. The same goes for vendors, especially those that specialize in niche markets. When looking for a new vendor, try to acquire three reliable references, particularly from those in your industry. This will help ensure that not only is the business good to work with, but it knows how to handle your particular requirements.
3. Good understanding of budget
This can't be stressed enough: your new vendor needs to understand your budget and how it can be used. This requires complete honesty at every step, especially if a project looks like it's ready to take off and spiral off the charts. A good vendor will take measures to prevent this from happening and will keep you informed every step of the way. Nothing can sour a good team relationship, or build one, quite as fast as how the budget is spent.
4. Range of offerings
How well does the prospective vendor's services fit your needs? It doesn't have to be a perfect score, but it should be close. Consider whether moving to this new vendor will complicate or simplify your business: if they are specialists on 25% of your needs, you might need to hire another vendor to take care of the remaining 75%. Or perhaps they offer everything you need, but are specialists in none of it. Take some time to see how their services will work with your business.
Also consider how well their range of services can complement your existing vendors. If you can reduce any redundance, your budget might thank you.
5. Sustainable over time for your business
Overlapping #4 on our list, consider the long-term. Your vendor relationships are investments, especially for those vendors who will be there to save you when a project goes awry. Does the prospective vendor's offerings complement your business goals? If your business plan intends for you to expand into a new territory over the next five years, will this vendor suit the business well then?
6. Personalities
All business is interaction, all interactions--ultimately--human. Meet the prospective vendor in person. Engage with them, face-to-face. Talk about non-business related things, such as hobbies. Are they people you would want to work with as a team? Is their business founded on the same ethics and goals as yours?
7. Contract and retainer preferences
If you're dead-set on avoiding specific types of contracts or retainers, this will be a consideration you'll want to look into early on in the selection process. Find out how the vendor operates and if there are any new or unexpected benefits for you if you were to acquiest their legal preferences. Similarly, find out how flexible the vendor is with their contracts.
8. Transparency
As a good metric of relationship status, the more transparent a vendor is comfortable being, the more likely they are to be a vendor worthy of trust. If you're welcomed in their office or studio with open arms and receive clear and frequent communication, this is a good sign. Give the prospective vendors a chance to be honest with you. If they are, you may have struck gold.
9. Workflow style
How do you want to work with the vendor? If you had absolute control over the relationship, how would it work? Answer this question first. Then find out how the vendor works. If you don't know, it's going to be hard to explain to the vendor.
Preferences such as communication methods (always by email or phone), conference styles (online or in person), and review points (presentation at the end or series of reviews in-between) can make a huge difference in your satisfaction and compatibility with a vendor.
While you're considering prospective vendors, be sure to take a moment to be a client the vendor would want to have as well. Be honest with them. Tell them what worked or didn't work with previous vendors, and set expectations accordingly. Let them know why you're in the market again and apply that experience for the better. This is a fresh start!