Negotiations and Love Songs

We are replete with manufacturers, designers, and vendors offering a mind-numbing and dizzying array of product, all with the intent of reaching the retail jeweler's showcase. But how do you, the retail jeweler, begin to discern which company or companies make the best business partner? How do you sort through the myriad of companies to find the best one for you?

Maybe a start would be to examine your current vendor list from the bottom up. Take a look at the company from whom you buy the least. This may or may not be the same company whose goods you sell the least, but that is something to consider as well. Ask the following questions:

1) Why is this company on my vendor list?
2) Can I get what they offer from another vendor further up my list? Or do I need to look elsewhere?
3) Is what I have sold from them profitable? How profitable? Should I be doing more?
4) How much inventory do I have on-hand from this company?
5) Is this company active in helping to improve my business with them?
6) What do I like about them? What is lacking?

You will begin to see an image of whether or not this company is important to keep as is; grow with as a partner; or eliminate altogether. You will also more clearly see what you need and expect from a vendor partner.

I know a jeweler who, over the years, has eliminated a number of vendors for many reasons. Problem is he adds new vendors each year, too, so the list never really shrinks all that much. He effectively weeds out weak performers while seeking new ones who he thinks can help build his business, but I wonder sometimes if he is really an active partner in the relationship or if he just thinks the grass is always greener elsewhere.

I know another who is so particular about his vendor partnerships that he rarely takes on someone new unless he has exhausted all possibilities of furthering his existing relationship for that product or category. He feels he chooses vendors carefully and not exploring ways to make things work, even when difficult, is a cop out which reduces the relationship to a complete waste of time, money, and effort for everyone. He would much prefer to do his homework up front and minimize the potential of a failed relationship, but I sometimes wonder if he is the clinger who can't leave a relationship, no matter how bad it is.

Somewhere between those two extremes lie the healthy partnerships.

How do you give yourself the best chance for success?

How do you sort through all the chatter and clutter out there to find your partners?

Do they measure up to your expectations once the relationship begins?

Are you, yourself, a good partner?

Remember that business relationships are a bit like personal relationships. In the beginning it all looks very rosy and attractive. Its meant to be that way. But how each react and respond when things get a bit rocky is what defines the relationship and whether it will grow or die. I'm reminded of Paul Simon's Train in the Distance in which he sings,

"The thought that life could be better is woven indelibly into our hearts and our brains."

Wanting things better is human nature, but how we seek to make them better makes all the difference. Retailer and vendor alike should now be taking the time to clearly define expectations and review partner relationship experiences.

Life will be better, but it can be better still with dynamic partnerships pursuing the same goals.