It is crucial to find a common definition of 'value' in a buyer-supplier relationship. Value in the business market is the worth in financial terms of the technical, economic, service and social benefit a customer's company receives in exchange for the price it pays for a market offering.
If you want to have exceptional vendor relationships, follow these principles:
- Learn what drives your customer's business and their challenges. Don't solely focus on your customer's needs, but also their requirements.
- Be competitive in every aspect from product functionality, price and impeccable service.
- For a strategic relationship, vendors must accept fair and reasonable terms, even if they don't fit the vendor's sales model. If a vendor is not willing to accept the terms, the customers only option is to 'exit' the relationship.
- Agree to terms that ensure risk sharing and accountability. This is essential for ensuring the vendor is as concerned about the customer's success as the customer is.
- The vendor is willing to discuss difficult issues and make everyone aware of possible problems that may arise. There must be open communication for a successful relationship.
How do buyers choose new vendors?
Puera, O. (March 22, 2017). How Buyers Choose Vendors: Top 5 Selection Criteria. Retrieved
Bryar, M. (August 18, 2015). 5 Principles for great vendor relationships. Retrieved From: www.cio.com/article/2971717/governance/5-principles-for-great-vendor-relationships
Anderson, J. & Narus, J. (Nov/Dec. 1998). Business Marketing: Understand What Customers Value. Retrieved From: www.hbr.org/1998/11/business-marketing-understand-what-customers-value