The most productive and beneficial vendor/supplier relationships are ones where both parties work together in concert for mutual success. Good relationships and collaboration with vendors allow you to focus on your core competencies and scale faster. According to a McKinsey&Company survey of more than 100 large global companies on supplier collaboration practices, companies with advanced collaboration capabilities had EBIT (Earnings Before Interest & Tax) growth rates that were double that of their peers.
Businesses who view vendors as partners, rather than a necessary operational factor, find these vendor relationships can serve as a strategic competitive advantage. Good partnerships throughout your business can make business smoother and more enjoyable. As this Inc. Magazine article notes, you need to have, “long-term customers and good vendor relationships that will carry you through challenging times or tight deadlines…”. It’s no different for the office equipment industry.
Your dealership has a critical strategic decision to make in choosing a finance company, and no two finance companies are alike. Think about the way you go-to-market and your long-term goals…do they jibe with the finance companies you are considering? Perhaps you’re looking to grow with your current customers and are looking for a finance company with a record of customer service excellence. Maybe you are focused on increasing the enterprise value of your company and need recurring revenue, so a finance company with the right innovative programs and back-end expertise might be more important in whom you select.
Whatever your go-to-market strategy might be, ask questions that are going to determine if a finance company is the right fit for your business.
Here are 7 questions you should ask before choosing a finance partner:
- Does your finance partner provide lease expectations in writing to avoid unwanted surprises?
- Can you get a knowledgeable employee from your finance partner on the telephone every time?
- Are you confident your finance partner will help you quickly resolve any issues that may come up?
- Does your finance partner understand that the lessee is ultimately YOUR customer?
- Does your finance partner offer innovative products and programs, showing commitment to your long-term success?
- Does your finance partner speak "flexibility" or "independent decision making?"
- Does your finance partner represent your brand well?
Once you’ve determined which finance company is right for you, make sure they make it easy to do business. You deserve a break from the day-to-day hustle. Click here, to learn how GreatAmerica can alleviate stress.
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