A New World Of Possibility
Your small business is probably limited by geography just as much as capital.
But it doesn’t have to be.
If you’re not already leveraging your distribution networks to gain access to new markets, a new world of possibility is awaiting your development.
Whether you’re doing business online or locally, you have vendors and distributors that have access to much larger markets than you’re currently serving. They’ve already spent the time and money building trust and brand recognition in these markets and can easily introduce your products and services to these markets without the time and money investment it would take you to enter these markets on your own.
By partnering with your distribution network, you can gain entry to new markets while maintaining your focus on your current strengths.
Are you limiting your vendor relationships?
Just because you’ve always bought and sold to the same companies doesn’t mean you can’t sell to the sellers and buy from the buyers.
As with all your other relationships in business and life, you should be looking for opportunities to be of more value. One way to add value to your vendor relationships is to help them generate more business. And by doing so, you can generate more revenue for your business, too.
4 Advantages Of Improved Vendor Relationships
- Focus On Your Strengths – Gain entry to new markets without the added costs of new employees. Allow vendors to focus on product returns, customer service and shipping while you invest in your core competencies.
- Build Your Network – Gain access to a wider network of retailers without the added costs of building those relationships. Continue to deliver a superior product or service and enjoy reach beyond your geographic capabilities.
- Improve Efficiency – Maintaining contact and customer service with every customer can become overwhelming. Allow vendors to fulfill order placement, product returns, payment collections and customer questions to reduce costs and increase efficiency.
- Grow Your Revenue – Access to new markets grows your revenue and creates a new stream of income for your vendors, giving them the ability to enter even newer markets. Embrace this symbiotic approach with all your vendors and distributors.
Developing your distribution networks can be a great boon to your business, but there are a few things to consider before making any commitments:
- The Right Market – The first thing you need to consider is whether or not the vendor has access to the types of markets you want to enter. Do these markets have a need for your products and services?
- Your Cost – It may be cheaper and more profitable for you to enter a new market on your own. Have you compared the costs of doing the work in-house vs. partnering with a distributor?
- Your Contribution – Depending on the distributor, you may be responsible for some of the marketing, customer support or training. Make sure to clarify the specific responsibilities for each party involved and factor that into your costs.
Taking your vendor and distributor relationships to the next level is an excellent opportunity for substantial growth. Do your homework and reach out to those who can mutually benefit from a deeper relationship.