Beating up your vendors for the lowest possible price or bypassing them for a quick savings online can save you money. At great cost. For example, that cheap knockoff that saved you 30 bucks can bring production down for several days.
To really save money, build relationships with key vendors. Talk about expectations such as:
- Being there when you need them. Maybe Cheapest Deals gives you a great price on fuses. But try calling them in the middle of the night when a critical machine went down and you need a 2A fuse to get it running again (this was an actual incident).
- Expert advice. Electrical distributors gain expertise in many different ways. This expertise is an asset they share with established customers. Make sure you are such a customer, rather than one who chases the lowest price.
- Advocacy. Manufacturers need their distribution channels. If you need something from a manufacturer (e.g., a custom solution or additional tech support), the electrical distributor with whom you’ve built a relationship can help you get it.
