Why the People You Refer Are an Extension of Your Business
Every agent has a list of names they call when a client needs something fixed, painted, moved, or repaired. What separates a real Vendor Bench from a random stack of business cards is how intentional you are about who's on it and why. Here's how I think about mine.
Table of Contents
What a Vendor Bench Actually Is
Why Vetting Your Vendors Protects Your Reputation
My Vendor Guide Has Evolved Over the Years
Staying in Relationship With Your Vendors
Showing Appreciation and Handling Real Emergencies
Building Your Own Vendor Guide
How AI Helps Me Stay Accountable
The Payoff: Vendors Who Become Clients
In Summary
FAQ
Where to Go Next
What a Vendor Bench Actually Is
If you've ever visited a small business, you know what a Vendor is. A Vendor is someone who provides a service. You needed the service they provided, right? And you will either recommend them to your friends, or you won't. You become an advocate for them, or, sometimes you warn others to avoid them. This week I am focusing on the importance of this to your small business.
Let me start with an example. You bought a house and you absolutely cannot live with the color of the living room walls. You need a painter. Typically you do one of two things. You ask Google or you ask a friend. But you hope that the painter is a good one. Right?
If you are the person referring the painter, you had a positive experience with them and you are excited to share their information. Or... you had a negative experience and you lead with "Don't call so and so because...."
This week I am focusing on building depth on your Vendor Bench for your small business. Vendors you use and those you refer. And I am here to tell you, they should be both. Both Vendors you have used and that you would refer.
Why Vetting Your Vendors Protects Your Reputation
Your clients count on you for good advice. You are a trusted resource. Subsequently, any Vendor you refer is an extension of your business. No, you aren't a painter, maybe you are a real estate agent. But if you refer a painter it's a direct reflection on your reputation. This is why the vetting process is vital to maintaining your reputation.
How do you vet a Vendor? You use their services. Or you call someone you trust and vet their recommended Vendor. See where I am going with this? Google is awesome for phone numbers. You can even read reviews and this can help, but it's not the same as your best friend telling you what a great experience they had with their painter.
As someone that wants to be a continued resource for my clients after they purchase a home, my Vendor Guide is serious business to me. Every time a client asks for a professional referral it's my reputation on the line. That's why I maintain strong relationships with my Vendors. They are an extension of my business.
My Vendor Guide Has Evolved Over the Years
My Vendor Guide has evolved over the years because my business has grown. My clients' needs have grown. Twenty years ago, life was different. We didn't have as many choices, nor did we use the internet the way we do today. You have to remember, I am older than Google. I had the library and my friends to call. Or the yellow pages! (Some of you may not even remember the yellow pages. It was essentially Google, in a printed book that got updated once a year. I know, how did I survive?) I'm not saying you can't get lucky with Google and find a great Vendor. I'm saying don't leave it up to luck.
Staying in Relationship With Your Vendors
Once a week, my target category for my lead generation time is my Vendor Guide. Staying in relationship with them is very important. It's not a one and done situation. Businesses change. People change. Stay in touch with your Vendors to ensure the service you once received is still the service of today.
Showing Appreciation and Handling Real Emergencies
Staying in touch is one part of my process. Showing appreciation is another. There's a good chance you need a favor, or maybe a short turn time on a project. No one wants to be used and abused. I try to only pull the "it's an emergency" card when it's an actual emergency. This is an example of showing appreciation.
And anyone who thinks there are no emergencies in real estate has never had to navigate a request to remedy list that must be completed in 10 days. Trust and believe if you can't close on your house until a window gets replaced with an egress sized opening in 10 days, it's an "emergency". Yes, this is a true story. Why did this happen? An appraiser flagged a bedroom window as being too small for climbing out of in case of an emergency. And my sellers had movers scheduled, and they already scheduled vacation days to manage it. And because they had to give possession of their home by a certain date because the lease was up on the buyer's apartment and they would be homeless. The window needed to meet the size guidelines, period. This was a real estate emergency and my clients needed a Vendor. Quickly. Could the timeline be extended? Yes, but getting it done in the allotted time was certainly less stressful and way easier. Have you ever tried to get movers rescheduled within a few days? Possible, but not easy. Plus, no one wants to be homeless with all of their possessions loaded up. My sellers turned to me to find a contractor and I had one. We closed on time.
As the Vendor Manager, having people you can count on to work with you and meet the timelines makes your business much easier. And protects your reputation.
Building Your Own Vendor Guide
If you think you don't have a Vendor Guide you may be mistaken. You've had to call a painter, plumber, mover. You name it, you've called someone. Start your list. Begin by outlining categories, then start filling in names. Call them. Have a conversation about adding them to your Vendor Guide and how important this is to your business. Discuss expectations, both yours and theirs. Make sure you are on the same page.
Back to the "showing appreciation", recognize good service. Send a thank you card. Maybe include a Starbucks gift card. Little acts of appreciation go very far. Have you ever received a thank you? It kind of warms your heart. Do the same for your Vendors!
Once you have your Vendor Guide, start asking them who else you should know. My painter works with a flooring guy. My plumber works with a water remediation guy. You see where I am going with this. Grow your list from trusted recommendations.
How AI Helps Me Stay Accountable
AI has an important part in this process, too. Accountability. Crazy, right? Someone that used the yellow pages now uses a robot to keep her accountable. My, how times have changed! I ask my robot to tell me who I haven't connected with in the past few months. I mean, my bot is already managing my to do list and my calendar. Trust and believe he knows who I've met with, emailed, talked to.
Once a week, I ask my robot to tell me 3 Vendors that I haven't connected with in the past 3 months. Then I call them for a check in. How's business? How's life? Anything new? How can I help grow your business? I try to always lead with helping. I genuinely love seeing others grow. It's an amazing feeling to help someone plus I've discovered that people love to help helpful people. I didn't start this to grow my business, it just happened. I just helped my painter buy a house. Well, technically, I helped his parents buy a house 2 years ago and last month I helped him buy a house. Talk about making my heart happy! I never imagined that having a great painter to refer to my clients would intrinsically give me clients. I've helped my lender, my title company, my attorney and my bookkeeper buy and sell homes and offices. And that's just a few recent examples!
The Payoff: Vendors Who Become Clients
Your Vendors grow your business. They reinforce you as a trusted resource for your clients and they become clients. Best of both worlds.
In Summary
In summary, vet your Vendors by using their services. Show gratitude by saying thank you, sending birthday cards, holiday cards. Little gifts. And most importantly, keep in touch. Call them regularly. Ask how you can help grow their business. Best business building ever!
FAQ
What exactly is a Vendor Bench? It's the list of professionals I trust enough to refer to my clients, painters, plumbers, movers, whoever comes up. It's not just a phone list. It's a group of people I've vetted, stayed in touch with, and would put my name behind.
How many vendors should I have on my list? There's no magic number. I'd rather have three painters I've actually vetted than ten I found on Google and never followed up with. Start with the categories your clients ask about most and build from there.
How do I start building mine if I don't have one yet? You probably already have one and don't realize it. Think about who you've called for your own house. Start there, then have an actual conversation with each person about staying in touch, not just a one time thank you.
What if a vendor lets me down? Businesses change and people change, which is exactly why I stay in relationship with mine instead of treating it as one and done. If someone stops delivering the way they used to, I know because I'm checking in regularly, not finding out the hard way in front of a client.
Do I need to pay my vendors to stay top of mind? No, but a little gratitude goes a long way. A thank you card or a small gift card after they come through for a client costs very little and means a lot. It's not about spending money, it's about showing you noticed.
How does AI actually help me manage my Vendor Guide? I ask my robot once a week who I haven't connected with in the past few months, since it's already tracking my calls, emails, and calendar anyway. Then I follow up with a real conversation. The AI just keeps me from letting relationships go quiet without noticing.
Where to Go Next
Your Vendor Bench is one piece of a bigger system I use to keep my business running without letting things fall through the cracks. If you want to see how I put systems like this into practice every day, I'd love to have you at my free weekly training.