What struck me as I sat down to write this article was that detail business owner didn't need another motivational article � staying in business these days should be motivation enough for a lot of us.
What they need more, I think, is for suppliers to help detail businesses to be more profitable, not just sell their chemicals.
Too often however, the reaction to this question is just to offer a discount. In today's complex business environment, simply offering a discount on detail chemicals and supplies isn't enough.
Discounting is a surface solution that temporarily impacts only one facet of your detail business. Real, long-term profitability comes through a total approach to your detail business. This approach should look at the sales versus the cost ratio of the business. That is, the revenue that is generated through sales of your detail service compared to the costs associated with providing that service.
The ability to strike a balance can be achieved by improving the relationships you have with your suppliers � developing strategic partnerships, not just business relationships. You need to be loyal to them, but demand more from them.
On the surface, the difference between a strategic partnership and a business relationship may seem a matter of semantics. But, as you look a little deeper, it becomes clear that strategic partnerships are the key to sustained growth and survival today business. What sets a strategic partnership apart from just a business relationship are a few thought-provoking questions:
Do your suppliers know what your personal and financial objectives are for your business? Do you know? (That�s your Business Plan.)
Do your suppliers know what kind of business you're trying to build? Do you tell them?
Do your suppliers know how they contribute to your profitability? Do they care?
How can suppliers be expected to provide more help if they don't understand what you and your detail business are all about?
Now, if you have a supplier that is asking the right questions, the key to taking the business relationship to the level of a strategic partnership is in your count.
Are you willing to discuss this kind of information with certain suppliers? Are you willing to do the necessary homework to find the people you can trust with this kind of valuable information? Are you willing to make your suppliers true strategic partners?
When you're evaluating what suppliers have to offer, make sure you're really comparing apples to apples. Make sure your suppliers are asking you the right questions and not giving you cookie-cutter solutions to your individual needs.
Your survival and success depends upon everyone and everything in your business working as hard as you do. Don't be lulled into a false sense of security and accept a discount in lieu of a long-term, proven approach to profitability.
If your suppliers aren't asking the right questions, do your homework and find suppliers who will. Take that leap of faith and share your business goals with people you trust.
Make 2004 the year you create a strategic partnership.
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