J. Gardner Group, LLC reposted this
Suppliers often spend incredible energy searching for the "holy grail" with big customers. ✕ 𝗛𝗶𝗴𝗵 𝘃𝗼𝗹𝘂𝗺𝗲 𝗰𝗼𝗺𝗺𝗶𝘁𝗺𝗲𝗻𝘁𝘀: It's rare for big companies to agree to high volume commitments because they like flexibility. A buyer will make this commitment only in rare cases where the supplier has an indisputable advantage in bargaining power or is selling "unobtanium." They simply can't in most circumstances for a ton of reasons. ✕ 𝗟𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘀: These are the "holy grail" for a reason. Big companies prefer short, flexible agreements from which they can exit. Even if you land one, it may be packed with loopholes or lack support from the top, putting you at risk. ✕ 𝗨𝗽𝗳𝗿𝗼𝗻𝘁 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀: Big companies prefer working with large vendors to dodge cash flow issues and keep commitments off their books. The only way to secure upfront cash is the need to access a rare commodity or a hard-to-find solution. Does that mean you have no power? Absolutely not. Smaller, more nimble companies have unique strengths. Play to your strengths and avoid spending energy chasing the holy grail. Need help? Contact us. #smallcompanies #tradeoff #negotitation