Purchasing From a Poor Power Position

[Roy Strauss]

Under some circumstances it is the seller not the buyer who has the advantage in a buy/sell relationship, (seller has a monopoly, resources to make products are always in short supply, demand fluctuates causing temporary short supply, etc.) The largest customers, oldest customers or those with personal relationships with the vendor usually get favorable treatment potentially hurting your competitive position.

When in a poor power position there are several things one can do to gain the favor of the supplier:

 Add value - can you recommend other customers to this vendor, feature them in a newsletter, or give them credit for some of your successes?

 Make your company conceptually larger - create a buyers group, have any of your friendly larger customers contact the vendor directly giving praise to you and letting the vendor know of their importance in the given supply chain and your importance to them.

 Make it as easy as possible to do business with your company - pay all bills on time, place stock orders, provide forecasts, participate in their promotions, praise your direct contacts there whenever possible.

You might just strike a responsive chord and improve your competitive position.

Roy Strauss is President of the Strauss Consulting Group, a supply chain logistics company that specializes in helping companies increase profits and customer service while reducing costs. For additional information, please go to www.scg4u.com.

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