GPI 474 – Sell to your vendors. You have leverage you are not using.

In most companies, more money is spent on vendors than on payroll, yet the sales department never calls on any of these companies with which your firm has phenomenal clout. You have leverage with these firms. Many larger companies have dozens of associated firms that might be buying your goods or services elsewhere, yet no one on your staff is researching these potential customers.  These are sales leads right under your nose.  Introduce your AP department to your sales group.

Prepare a call list for the sales department:

  • Dump largest vendors: Dump the YTD or history to date payment list of all vendors the company pays. Include the company name, address, telephone number and fax number and any contact name included.
  • High to low dollars: Sort the list from highest dollars to lowest.
  • Cut no-opportunity vendors: Eliminate taxes, credit cards, loan payments, employees (travel reimbursements), benefit payments (i.e. medical insurance, life insurance).
  • Forward to sales: Hand the list to the sales manager and ask how often they want an update.
  • Issue new monthly leads: Give your sales department a list of new vendors each month to pursue sales leads.
  • Research largest vendors: Hire an intern to do research on your top 50 vendors. Ask him or her to research and list all of those top vendors’ associated subsidiaries, divisions, and brand names owned.  All of these branches and divisions are excellent targets for your sales personnel.
  • Check YTD payments for leverage: Ensure your sales personnel know exactly how much your firm has paid to each of the targeted firms before they visit. They should know the vendor’s sales contact who sells to your firm so the sales call will be taken seriously.

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