Tuesday, April 8, 2008

Vendors, it could be different?

In the IT business we have vendors calling daily. If you cannot have a good relationship with one vendor, there are others available. That is not to say that you should move vendors in a whim, it is important to build strong vendor relations and not change those relationships easily.

With that said, a friend and neighbor owns a powersports business (ATV's Motorcycles and such). Kfed, my neighbor had been getting heat from one of his vendors for some time to become an exclusive dealer of that vendors product. Kfed had 2 vendors that's it.

On Christmas eve, that vendor called and told him they were dropping him. Mind you, Kfed sold hundreds of units a year. Due to him not committing to them exclusively. CHRISTMAS EVE. Great corporate business. I thought this was extreme. It was worse. Through friends in the business, Kfed found out that this vendor during the annual meeting of dealers had the companies that were exclusive wear a red arm band. The dealers that were not exclusive wore a red arm band and a orange arm band. Then during the introductions of the meeting stated everyone with two arm bands leave. They were fired! So all of these dealers that paid their expenses to get to the meeting were used to make a point.

What poor corporate leadership. This company is a world wide force! They could have notified these dealers prior to coming to the dealer meeting without the embarrassment. Now they have an army of angry dealers with intimate knowledge of the company with a common theme to bury the vendor that embarrassed them all.

My point? Respect your vendor relationships.

1. Follow through with your promises. If you said you would, then do it.

2. Build strong relationships. It will get you far.

3. Do not jump ship at the sign of problems.

PS Kfed is a nickname....

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