Question

Topic: Strategy

Partnership With Clients

Posted by Anonymous on4/13/2010 at 2:45 AM ET 250 Points
Hi All,
I am working with the Engineering Services market (Europe & Middle East). We have been providing order based services to clients. But we have realised that it is important for our sales team to develop and nurture accounts who will be looking for a long term partnership rather than a one-off service provider.
Now the problem is: In the category of services we provide, the whole industry is in an order-service-pay and forget relationship. So we want to pioneer the idea of a long term marriage with the client for obvious reasons like security. But I am not able to find a reason why the client would want it. Could someone direct me on the ways to understand why the client would need such a partnership rather than a one-off business as and when he gets his project which is far less commitment than the new method?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
或,SIGN IN

RESPONSES

  • Posted byCarolBlahaon4/13/2010 at 7:43 AM Member
    Why? To have someone knows your business, and not have to educate them from scratch with every new project-- reinventing the wheel over and over again. To create a more efficient solution. To have someone who understands the people, the culture and dynamics of the org. To eliminate the costs associated with bidding each project. To retain someone with a proven track record, not just in the industry-- but in your front yard.

    I wouldn't scare them with committment. A working relationship like this can still be terminated at any time. Call it a "preferred vendor", or a "master vendor" of those services.

  • Posted byCarolBlahaon4/13/2010 at 8:44 AM Accepted
    I've negotiated a lot of master vendor contracts. Think of it this way-- if you are quoting a 10K job, you know what your margin is. But if you are quoting a 1Mil job-- you probably could take it at less margin. And the client gets a consistant product at an overall lesser cost than splitting their work in smaller projects.

    我想最好的例子是我们的政府和GSA。I'm working with a client in marketing this way. It's a lot of upfront work, (as in a master vendor program) but once in place, its streamlined for both parties. The GSA mission is to "streamline the administrative workload of the Federal Government." With a primary goal to prevent overspending. The know they can't do that piece mealing out every single RFP. The preference is to get vendors on a contract and to elminate bids.

    I think the system is a good model to base your presentation bullets. The US Govt spends $43 mil an hour, or $1Bil a day. GSA is totally self funded, no tax dollars support the program. My point is, your clients aren't spending a bil a day. But you can make the point of this being one of the best practices to understand the value and efficiency they have put into their purchasing.
  • Posted byFrank Hurtteon4/13/2010 at 10:48 AM Member
    I have discovered that the key to the kind of relationship you are looking for comes in offering some kind of ongoing service.

    In your business, this can come in the form of troubleshooting, small changes and ongoing support. This gives you a reason for being with the customer and allows you to identify new projects before they reach the bidding stage.

    I have a great deal of experience with systems integrators and engineering firms and would be happy to chat with you on the topic.
  • Posted bymgoodmanon4/13/2010 at 7:53 PM Moderator
    Be careful about using the word "partnership" with your clients. They probably don't want a partnership. Maybe they'd like a long-term relationship -- especially if there's something in it for them.

    But a "partnership" suggests that you're going to share the investment and the profits. And it invites you to participate in making the key decisions that affect their business.

    That would really change the nature of your relationship, and it would probably scare them away immediately.

    The long-term relationship isn't a bad idea at all. Just be careful not to call it a "partnership."
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Strategy)