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Lowering Your Costs With Vendors While Building Relationships

Aug 30, 2008
A select group of people, known as vendors and fulfillment companies, are crucial in taking your products from concept to cash. You will come across a wide range on vendors - graphic designers, web programmers, CD duplications, fulfillment houses - all of which will affect your business. If this group of individuals can affect how your business is run you want to build quality relationships with them. This article will outline a few tips on how to do just that, while lowering your fulfillment costs!

One great way to build your relationship with someone is to send them as many referrals as you can. By sending them recommendations and referrals they will see your relationships as having more value then just someone they do business with. When I do this with the vendors I work with I am now not only benefiting them by giving them business but by also bringing more business to them. This puts me in a much more favorable light then most of their costumers. You want to give them as many benefits as quickly as possible - sending referrals is a very easy method to do so.

Joint venture projects is something else I have done with my vendors in the past. An example of this is when I worked with a graphic designer on a product. She did the graphic designer element, I put together the product and did the marketing side and then we split the profits.

Hello! I completely eliminated my cost up front and this saved me a ton of money. And in the early stages, I didn't even have the money to be able to send to that graphic designer. This was a great strategy.

Some people tell me, "Yeah, but Stu, you're giving away 50% of the profits. That's a big chunk of money." Well, time out for a second. I'm of the viewpoint that it's better to get your projects completed and making some money versus keeping all of nothing and not getting anything completed.

If I wasn't willing to work on building that relationship with that vendor, that project would have never been completed. If I didn't get that project done I would be making no money from it. Instead that project would remain in the pile of possible ideas, bringing in no profit.

When you are on a tight marketing budget, you've got to get creative. And that is one creative idea that I've used. I've also used that with web developers.

Another tip to save money that I have learned over the course of using vendors is to have as much work done ahead of time. By doing this you are cutting down on the time and effort your vendor needs to use on your project. You can even ask your vendor questions, like, how could you decrease they're effort, reduce your overall costs, etc. Vendors will answer these for you, they want to work with you. Everyone has a budget to work within and vendors will be willing to help you stay within it, they are always interested in your business and will help you meet your goals.

Here is another tip - create a template instead of just a project. This way you can use it more than once, without having to pay for the same thing twice. I'll go into more detail to explain it better.

We'll use an e-Book as an example. Instead of getting your graphic designer to design a specific layout for your one e-Book, why don't you just get them to design a template you can use to every other e-Book you develop?

Even though this may seem like a different approach, it will save you tons of money in the long run. For your graphic designer its about the same amount of effort, but saves you money. This is just another creative idea on how you can build quality relationships with your vendors but also save yourself a lot of money.

Your vendors and fulfillment companies can really make a difference in your business and these are just a few ideas on how you can build your relationship with them and also cut costs. More strategies will come to you if you only start thinking outside the box!

By exploring your creativity ideas will come to you when you need them the most!
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