In today’s construction industry, the easy availability of quick discounts and promotions results in frequent vendor changes for most companies. In the short term, it seems like a good move to take advantage of the current best deal. However, the cost of long-term administrative inefficiencies and pricing changes usually outweigh the temporary financial benefits you might have realized. Although it may seem counter-intuitive, establishing a lasting partnership with your vendor results in a number of advantages that will ultimately improve your bottom line. One easy and productive way to accomplish this is through an alliance of companies that band together to obtain pricing and service efficiencies through a network of quality vendor partnerships.
Jumping from one vendor to another in your business means that you are purchasing from a company that does not have your best interests in mind. For example, if you utilize a different vendor for each pavement project that you complete, you could be dealing with dozens of companies; this scattered approach sacrifices the opportunity to develop a relationship with a single vendor that will develop a commitment between your companies. Benefits to that type of relationship include assistance from the vendor in planning around your projects and creating initiatives to assist you in future endeavors. A deeper knowledge of your business helps the vendor to anticipate your needs, adding an extra level of quality to their service and accountability. Also, a vendor that has a partnership with your business will be flexible to meet your schedule and supply needs.
This one is pretty intuitive. It’s a lot easier to deal with an established partner for your supply needs than to toggle between multiple vendors. How often have you contacted a company for an upcoming asphalt project and had to try multiple times to reach the sales representative? If a vendor is less than responsive before obtaining your business, you can imagine it will be even less so after they’ve made the sale. However, once there is a partnership established, your value to the vendor increases, and vice versa. Ongoing contact between your companies helps to streamline the communication process and improve both sides of the relationship.
While it may seem like a good idea to jump on the latest price cuts from a local vendor, what you make up in immediate savings is overshadowed in the long term. When you make a short-term deal, you may be hitching your business to an unstable company that could end up dissolving or providing low-quality products or poor customer service. Ultimately, it’s a better financial decision to establish a long-term partnership with a vendor you can trust. Additionally, by participating in an alliance of construction businesses, you can utilize your combined buying power to take advantage of the best pricing from proven vendors that will commit to meeting your needs on a long-term basis.The relationships that result from an alliance of construction companies and vendors is a win-win scenario for both sides. The efficiencies that result in the areas of commitment, communication and cost-savings are good for all involved and will ultimately improve the profits of both vendor and client.