Work dilemma

1886 · 15 August 2019 at 11:08PM

For the past five years an outside company has been supplying my place of work with consumables. I in particular have built up a very good relationship with the guy as 80% of what we order is for me and my job.

Last month he told me that this is his best account and he hopes to keep coming here for many years. I see him once a month so have got to know him well. One invoice could be £1,500 and he works on commission with a very low basic salary.

A competitor has approached my manager who then asked for them to come in, they had a chat and left a price list. Some of their equivalent products are 30-40% cheaper. Today they came back and left some samples, so far I’m not impressed.

My dilemma is should I tell the current supplier the situation as when he next comes in he’s going to see the competitors stock everywhere. I could just wait for him to come in but then it’s going to be very awkward, part of me thinks maybe I should tell him in advance but I don’t know if that’s a good idea.

Ultimately it was my manager who agreed for the competitor to come in, I told him I’m happy with the current products. I just feel quite loyal to the current guy as he’s a friend now to me at least and he’s always helped us out if we’re in a fix. He may come in tomorrow but certainly in the next two weeks, my manager doesn’t have the relationship with him that I have as he never sees him so he just sees it as business whereas it’s different for me, five years is a long time

Savvy_Sue · 16 August 2019 at 12:05AM

It's business. Your key argument is that the competitor cannot undercut the price and provide the same quality. If the quality matters, be prepared to defend a business decision if you want to keep using the original supplier.

System · 16 August 2019 at 8:55AM

Jeez man - man up, it's business not personal. Why should you feel guilty. Let them figure it out and hopefully they'll treat you extra nice.

pinkshoes · 16 August 2019 at 9:46AM

1886 wrote: »

Some of their equivalent products are 30-40% cheaper. Today they came back and left some samples, so far I’m not impressed.

Not impressed with the samples e.g. poor quality or not impressed they are looking at an alternative?

An engineering company I worked for used to let us engineers deal with suppliers. They then decided to set up a purchasing department. I chose the material, and they then bought it as cheap as possible, not from my usual supplier.

It was rubbish quality, with no customer support. My previous supplier had amazing knowledge of the products and always supported projects so that things progressed on schedule.

They may have saved money on materials, but it caused a huge loss in delayed product launch dud to all the issues I had to overcome on my own.

TBagpuss · 16 August 2019 at 1:45PM

No, you should not share commercial information with a third paty unless you have your manager's explicit permission. Telling him that you are looking at other suppliers or that they are cleaher is potentially commercially sensitive.

It doesn't sound as though you are the one making the desicion about which supplier to use, so if the suipplier you know makes any ocmment about seeing the other products you can simply say that you do make decision about suppliers.

If you feel that the other supplier's maternials are of a lower quality, that is absolutely something you can speak to you manager, or the person whodoes make the buying decisions, about. But you should focus on why the new products are not as good a fit for the buisnes, not aboutyour friendship with the old supplier.

bizzisguy · 16 August 2019 at 1:48PM

If you want to work as a buyer, you have to learn to separate friendship and business.

There is nothing wrong (and everything right) with having a good relationship with your suppliers, some of mine have become very close friends over the years, however, every single one of them knows that at the end of the day, I have to do what is best for my business, not what is best for them, this is my livelihood, i can't jeopardise that for the sake of not upsetting them, they don't pay my bills..

Due to my good relationships, if I find my suppliers are not price competitive, then I will let them know and give them the chance to defend their supply of business to me, if however they can't / won't become competitive then we shake hands and walk away, still as friends as these things have a habit of coming back around, so there is no need to part on bad terms.

Price is always important, however, I won't necessarily use the cheapest supplier, as a buyer you need to understand price v cost - the cheapest cost is not always the best price - as one of the other posters says, poor quality can end up costing you far more in lost time (or not being delivered on time), it's easy to justify your decision using that argument.

If your supplier thinks of you as a friend as much as you think of him as one, then be honest with him, tell him you have had an alternate supplier in and their prices are far more competitive, you'll soon find out if the friendship is genuine or he is blowing smoke up your ... so that you didn't go and price check.

He will rather you were honest and give him a chance to keep the business than just get a phone call to say he lost it.

Also, 5 years is great but it's nothing in the grand scheme of things, I have suppliers I have known for 16 years, I wouldn't think twice about moving business from them if they were not competitive and they know that (I tell them!)

Smodlet · 16 August 2019 at 2:09PM

It is not only not a dilemma, it is neither your business, your decision nor your problem; it is your manager's/the buyer's/the business owner's. So what if you were in love with this sales rep? Why should your employer care? His only concern would be that you were championing this rep's interests at the the expense of his business.

As for informing this rep, is it your place to do so? If you really think it advisable, I would suggest you ask whoever does make the buying decisions for permission before doing so... Preferably in writing to cover your rear. A far better plan might be to refer the rep to whoever decided to use another supplier and let them take whatever fall-out there might be. Unless the rep is utterly unprofessional, there will be none especially if he ever wants to supply your business again. He will also be on a hiding to nothing if he is foolish enough to try any emotional blackmail on the decision maker, who will tell him to take a hike.

Your only argument is to use the cheaper alternatives for a while and, if they are demonstrably inferior to those of your preferred supplier's, illustrate this to whoever makes the business decisions; explain the cost/time implications caused by the inferior quality if there actually are any.

As most have said, business is business. Any sales rep worth his OTE will be good at making customers like him; it is his job.

Brynsam · 16 August 2019 at 2:23PM

You're letting this 'friendship' cloud your business decision making. Take a step back and detach yourself from the situation. If you can't do that, you shouldn't be in charge of purchasing stock. Getting emotionally attached to sales reps is never a good idea - and that's what he is.

shortcrust · 16 August 2019 at 2:26PM

You sound like a lovely caring person. But I agree with what everyone else is saying.

This chap might also consider you a friend, but sales people are performance artists and getting you to like them and feel loyalty to them is what they spend their time doing all day every day. I suppose my point is don’t feel too bad.

bizzisguy · 16 August 2019 at 2:45PM

shortcrust wrote: »

You sound like a lovely caring person. But I agree with what everyone else is saying.

This chap might also consider you a friend, but sales people are performance artists and getting you to like them and feel loyalty to them is what they spend their time doing all day every day. I suppose my point is don’t feel too bad.

Spot on, a big part of my role as a buyer is to get suppliers to like me and think that I am their best friend so that I get exceptional service.

There has been many times over the years that I have dealt with suppliers that I could take or leave (and some I positively disliked) but as far as they were concerned I was a top bloke that they really liked and wanted to help out as I was so friendly and helpful to them.

My remit is to get the best price and service I can get, if that means I have to come across as super nice then that is what I do.

There is a major difference between working with someone and actually liking them.

some words of wisdom that a sales friend of mine once said - people can't sell you anything, you can only buy from them, meaning no matter how hard you try, if I don't want to buy it, you won't be able to sell it to me...

Smodlet · 16 August 2019 at 2:50PM

I wish someone would tell that last bit to all these bloody cold callers... No, they don't work on me and yes, I always blocked their numbers... They have to go through a virtual "dragon" now.

Work dilemma

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free