Why Your Supplier isn’t Performing: Pitfalls in Supplier Relationship Management in a Small Business

Ever wondered why your supplier isn’t performing? If you had a great relationship with a service provider, she goes out of her Vendor Relationship Management way to further your business. Imagine a good ghostwriter who writes compelling copy for your blog. And your blog gets you hits through search engines. It saves you money and makes money! If you do that enough, Google traffic will be good enough to compete with your ad campaigns!A killer User Interface designer, a Search Engine Optimizer, and a good accountant can all contribute enormously to your business. The more each of them contributes, the better your business gets. They will want to if you have a good relationship with them. Did you invest to nurture the relationship or are you spoiling the relationship yourself?

You must also learn how NOT to spoil a relationship first.

Forgetting the individual behind the vendor

If you forget that there is an individual behind the vendor, you are mistaken. This gets manifested in several ways. You don’t greet them or wait for them to greet you. You wait for opportunities to yell at people. And when you get, you yell to your heart’s content. You don’t think what is ‘fair.’ You just think that you are the buyer so the service provider has to service you anyway.

Mistake. Big mistake. Look at the individual. Connect with them.

Squeeze too much

Some people want to squeeze as much as possible. If you ‘squeeze all,’ where is the incentive to delight you? Because, at the next opportune moment, they will look at replace you with more reasonable client. Always, aim to pay a little above average so more people want to work for you. The more they want to earn from you, the more they will

want to delight you.

Use ‘take it or leave it’ tactic too often

This is the bullet that many employers think will solve all problems. “Do this. Or I will give this work to someone else.” Don’t get me wrong. It is YOUR prerogative to get the kind of work you want done. But don’t use it too often. If you do that, your provider will lose interest in you. He/she thinks that it’s just a matter of time that you will go away and so, it’s better to focus on getting some other client who doesn’t threaten pulling off often. After all, a service provider works for you because he/she thinks you are going to give more work. Not because you can pull off any moment.

Asking for the moon

If something is not possible, or it costs too much money to the provider, don’t press for it. I guess the touchstone here is, is what you are asking reasonable? Once again, don’t get me wrong. You are absolutely entitled to high standards of work. You can demand that. But, is that reasonable given time, and the price you’ve promised to pay? These are questions you have to answer yourself.


Ego comes in big time. “I am the buyer. He/she is just the service provider. SHE must agree with ME!” How crude! You forget that both you and your service provider are partners in achieving the same goal. YOUR goal. Make sure you further your goal. Not just your ego.

If you remove these value drenchers, you are set for the positive factors of your relationship to kick in.

If you employ professionals on P2W2.com, the world’s best marketplace for freelancer professionals (which will go live soon), you will realize that there are wonderful tools to work together. In addition to those, you will be able to get more value out of your supplier relationships if you manage them well. From time to time, we will bring to you all the knowledge and insights you need to get your vendor relationship work for you.