• FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • LOGIN
  • SIGN UP FREE

CFO Daily News

  • FREE RESOURCES
        • Accounts Payable
          Finally! The trick to securing greater T&E compliance
          Benefits
          Rooting out folks who don’t belong on your health plan: A 6-point dependent audit checklist
          IT
          3 costly misconceptions about biz email compromise
          Credit and Collections
          Collecting via email: 4 must-make moves in your subject line
          Accounts Payable
          5 Tough-to-spot signs that an invoice is fake
  • PREMIUM CONTENT
        • Staff management
          120 Proven Communications Tips for Today’s CFO
        • Payroll
          Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits
          Accounts Payable
          T&E Best Practices: Complete Guide to Ensure Compliance
          Payroll
          Payroll Best Practices: 4 Ways to Save Time and Money
        • Staff management
          Email Best Practices: A 6-Question Quiz
          Staff management
          Innovative Communications Strategies: An Email Case Study
          Staff management
          A 5-part Framework for Successful Workplace Communications
        • SEE MORE
          PREMIUM RESOURCES
  • CORONAVIRUS RESOURCES
  • Accounts Payable
  • Credit and Collections
  • Payroll
  • Accounting
  • Benefits
  • Finance Technology
  • More
    • Employment Law
    • Strategy
    • Policy and Culture
    • Fraud
    • Payments and Transactions
    • Budgeting and Forecasting
    • Banking
    • Staff Management
    • Cost Control
    • Supply Chain
    • IT

5 ways to get the most out of your vendors

Darlene Stahl
by Darlene Stahl
August 4, 2008
2 minute read
  • SHARE ON

The best vendor relationships can be a source of discounts, and better service. But how do you get the most out of the relationship? 

Low prices aren’t the only perks to look for in a good vendor. Service and high-quality products also weigh in, but getting those at a good price is always a bonus.

Vendors in competitive markets– such as cell phone providers, office supplies, computer equipment and hotels — will yield some of the steepest discounts.

Relationships that go both ways get better results. If there’s a product or service of yours that your vendor can use, offering it at a discount will go a long way toward build a strong and fast relationship.

Here’s 5 tips to get the most out of your vendor relationship:

  1. Know what’s most important. Cost aside, what’s the most important factor when deciding whose product to go with? Is it service, quality, speed, ease of use or availability? Once you’ve pinpointed exactly what will make the relationship valuable to you, you’ll be able to gauge whether or not you’re getting a good value for what you’re spending.
  2. Approach the vendor with results. Having documented your company’s spending patterns and volume for its products will help convince them that a relationship will be worthwhile. This is especially handy if you’re a brand new customer or have only been using them a short time.
  3. Benchmarking, even informal, helps. Having a reference point for price, service and quality will provide leverage in negotiations. Not only will you have a feel for what you should be paying and getting in return, the vendor will know you’ve done your homework. Don’t hesitate to ask your peers what they’re spending on the same or similar product or service. They’ll probably appreciate swapping information so you both get the best deals.
  4. You know your competition, know theirs too. The more competitive the market for the vendor, the more they’ll be willing to negotiate. Know what the competition’s up to, and use it in your negotiations. Vendors in a highly competitive arena will be more flexible on prices and payment terms and should offer better service to keep you as a customer.
  5. Just ask. Yes, sometimes it is that simple. Flat out asking a vendor for better terms and discounts can yield results — especially if business is slow and they need to move product. It also puts the relationship on an honest footing, which comes in handy down the road. This is most useful if you’ve been a long-term customer or have given the vendor a discount on your product or services.

Keep Up To Date with the Latest Finance News

With CFO Daily News arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies.

Sign up for a free CFO Daily News membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
CFO Daily News Logo
  • ABOUT CFO DAILY NEWS
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Accounting
  • Benefits
  • Payroll
  • Policy and Culture
  • Employment Law
  • Fraud
  • Finance Technology
  • Accounts Payable
  • Credit and Collections
  • Strategy
  • Payments and Transactions
  • Budgeting and Forecasting
  • Banking
  • Staff Management
  • Cost Control
  • Supply Chain
  • IT

CFO Daily News, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, CFO Daily News delivers actionable insights, helping Finance execs understand what Finance trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

preloader