The best wholesale supply houses have learned how to truly partner with their top vendors to maximize their sales potential and profits. If you are not meeting with vendors on a semi-regular basis to make sure you're taking advantage of all of their specials, advertising, discounts, digital tools, and knowledge, you are making a grave error.

It was easy to get away from this best practice due to COVID-19 and the new way that business seems to be done, via videoconference. However, these types of meetings, while they make sense in some cases, are not the way to build and grow relationships. It is important to not use excuses for not conducting in-person meetings with top vendors. You need to convince these important partners that you are honestly looking to grow their business and are serious about making that happen.

In these meetings, we review year-over-year performance. We check to see if our reported numbers are the same as the vendor’s. Do we both show growth over the prior year, and, if so, by what percentage? The numbers need to be close or further investigation is required, but in most cases, we do a great job reporting our sales, and the numbers add up. Reporting our numbers to our vendors is part of being a solid partner.

It is important to see how your vendors view the market climate and what they think their potential is to grow their products. You might find that your viewpoints are different, or the conversation could verify that your outlook is correct, but, either way, the feedback is vital for preparing for the upcoming season.

Your top vendors have creative ways of growing sales of their products, but you must be close enough to them to learn this information on an ongoing basis. You might find that some vendors save the very best practices for their top distributors, and if you are not one of them yet, you might not be getting this information unless you can show your commitment to growth.

Our market is changing at a fast rate, and it is important to work with vendors to adjust or shift plans based on market conditions.

We found, when meeting with vendors, that there are sometimes various rebates, discounts, or large customer claim-backs that are available that we would not have known about if we hadn't contacted those vendors. We wanted to make sure that we were utilizing all their tools and programs so that we could continue to create a win-win scenario with our vendors and our customers.

If you meet with a variety of vendors, the one truth that will become apparent is that every vendor feels that a key to success is to schedule joint sales calls with your company’s territory managers so that they can get out in front of your largest customers to present their goods and services. It doesn't matter how great territory managers are — the vendor is the expert in his or her category and can better present the products. We have found that when we bring vendors out, our closing rate on sales opportunities increases significantly. It also allows the vendor to feel that the partnership is working; it always feels great to close a sale, and letting vendors help in this gives everyone a feeling of accomplishment.

We require territory managers to perform several joint sales calls every quarter, and we track this activity to make sure that it is being accomplished. We have key vendors that we want to make sure to get out in front of our customers so that they can educate the contractors and territory managers on their latest groundbreaking products or present a new sales promotion that will greatly benefit the contractors. Sometimes it is just important for the contractor to learn what is taking place in the industry; even if they are unlikely to purchase, your contractors will be happy that you have educated them, and this strengthens your relationships.

All sales are based on relationships, and it is important for you to have great relationships with your vendors so that you either become or remain a preferred distributor. If you think that your vendors treat everyone the same, you are sadly mistaken.

The rep agencies for various vendors will provide extra attention to the distributors who are wise enough to develop a tight relationship with them and will go the extra mile to make them feel they are respected and the information they provide is valued. You need to stand out and be better than your competitors with your vendors. You have outside selling and inside selling, and I consider working with vendors to be part of inside selling. The mistake that is made is when the distributor thinks that the vendor needs to sell to them and present to them. The smart wholesalers are also selling to the vendors their ideas on how they can further grow the vendors’ market share. You need to sell your ideas and ask for extra support when appropriate.

Have you earned the respect of your vendors? Are you meeting with your top vendors to convince them that you can grow their market shares? Those who are gaining a competitive advantage. I have been told about distributors who call vendors only to complain about high prices or problems; these competitors are not receiving the same level of care and service as the distributor who values their vendors and does not beat them up over concerns or problems every time they meet. It is much better to cultivate a strong relationship so that you can work together to grow and prosper.

Good luck and happy selling.