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Summary
- Securing a lower price from a supplier doesn’t always equate to making a good deal, especially in the long term.
- Signing a partnership is excellent, but if the partner leaves you for a competitor the following year, it’s your fault.
- Like any relationship, be it personal or business, your partner needs regular, subtle reminders that you are desirable and that others would like to partner with you.
The Power of Strategic Partnerships
Securing a lower price from a supplier doesn’t always equate to making a good deal, especially in the long term. This article is crucial for every entrepreneur. We invite you to explore whether the strategy discussed here applies to your business.
Winning Alone: Attractive but Risky
A business needs values, a development plan, KPIs, solid HR processes, and various rules, each contributing to success. However, recent analyses of new PulseWeaver clients have shown that one fundamental ingredient is often overlooked: partners.
Strategic Partnerships
Strategic partnerships can dramatically propel a business. It’s not just about finding large partners but those who can become a secret weapon in the market. The most evident way to create strategic partnerships is through your suppliers. And it’s not just about getting advantageous prices but something more valuable: information.
The Importance of Information
Among your suppliers, some not only meet your needs but also serve other businesses with similar requirements. These suppliers are a goldmine, possessing data on purchasing trends, top-selling products, exceptional peaks, and behavioral changes. A partnership that provides regular market reports and alerts on opportunities or exceptional peaks keeps you informed about every detail of your market.
Even if these reports don’t immediately increase sales, they allow you to validate your strategy or make necessary adjustments to stay competitive and avoid missing opportunities due to a lack of information.
Benefits of Partnerships
Capturing Leads
Prospects often approach your suppliers for advice on choosing a provider. These prospects are usually serious and have significant projects, hence their thorough vetting process. A good partnership can capture such prospects through reliable direct recommendations, saving substantial commercial effort.
Mutual Interests
For the supplier to benefit as well, offer them a fair margin, sign an exclusivity agreement, send gifts during holidays, or provide discounts to their employees. Depending on your industry, find ways to ensure they have an interest in prioritizing you.
Challenges of Partnerships
Securing such a partnership can be challenging, especially if you’re just starting. The supplier might fear being perceived as a snitch by your competitors. When proposing your partnership, include details on how you will communicate this relationship, your ethical commitments, and the penalties for non-compliance. If the supplier is convinced that helping you succeed will also benefit them, congratulations—you’ve likely secured the deal of the year!
Case Study: Renovation Company and Material Supplier
This type of partnership is incredibly advantageous. It can offer insights into trending materials, common types of work, geographical areas with high demand, and prospects looking for material prices before requesting quotes. In return, all projects are supplied by the partner, their employees get labor discounts, and they provide the materials.
Securing Your Partnerships
Signing a partnership is excellent, but if the partner leaves you for a competitor the following year, it’s your fault. You must ensure the partnership’s longevity. Engage mutually, such as renting a shared warehouse or investing in a shared asset that both parties need. This makes changing partners more complicated and avoids turning the relationship into an auction.
Another way to secure the partnership is by integrating your CRM tools for more efficient order processing and automated data sharing. This not only provides technical advantages but also engages the partner in another investment requiring amortization over time.
Effective Communication
Before discussing this with your partner, collect data on their future projects. Cross-reference this with your own to identify areas of mutual benefit. Present the initial investment savings and ongoing benefits, like shared warehouse costs, reduced legal fees, and shared maintenance expenses. If the partner sees clear advantages, they’ll be more inclined to commit.
Maintaining Long-Term Relationships
Like any relationship, be it personal or business, your partner needs regular, subtle reminders that you are desirable and that others would like to partner with you. However, you remain loyal because you have the right partner.
Examples of Complementary Partnerships
In addition to suppliers, seek partnerships with complementary service companies: car dealerships and gas stations, travel sites and apartment rental sites, moving companies and furniture sellers, advertising agencies and commercial space designers. Every business can find valuable partners.
Plan Exit Strategies
Your partner might leave you, but you should also be prepared to leave them if you find better opportunities elsewhere. If their prices become uncompetitive or their business contributions fall below a certain threshold, you need criteria to assess this. As an entrepreneur, make the best choices for your business, which you are responsible for, including the families it supports, especially your own.
So, is securing a lower price always a good deal? Not necessarily.
PulseWeaver: Your Strategic Partner
PulseWeaver is here to help you do better. We have updated our list of tools available to our clients to include a partner suggestion tool tailored to your needs. Describe your industry and target prospects, and you will receive suggestions to start your partnership search.
Example:
- Test Description: Landscape gardening company, looking for prospects in the same geographical area, owners of houses with gardens.
- Response:
- Local Plant Nurseries and Garden Centers: Partnering with local plant nurseries and garden centers can provide a steady supply of high-quality plants, trees, and other landscaping materials at competitive prices. These partnerships can also lead to referrals, as garden center staff can recommend your services to customers seeking professional landscaping assistance.
- Outdoor Furniture and Decor Retailers: Collaborating with outdoor furniture and decor retailers can help you offer clients a comprehensive landscaping solution. By showcasing your landscaping services alongside their products, you can attract customers who are looking to create or enhance their outdoor living spaces, ultimately leading to increased sales for both businesses.
- Real Estate Agents: Establishing partnerships with local real estate agents can be a mutually beneficial arrangement. Your landscaping services can help enhance the curb appeal of listed properties, making them more attractive to potential buyers. In return, real estate agents can recommend your services to new homeowners looking to improve their outdoor spaces.
This powerful tool is available for all packages, accessible in your dashboard at this exact location [Business Parteners tool].
We hope this article has opened new perspectives for evolving and sustaining your business. Feel free to use our new tool for quick and effective suggestions.
