(Part of our participation in the Association of Legal Administrators Educational Conference 2008 in Seattle)
Trust in Relationships
Best price may come at a high price - the best service and value ratio is not necessarily the low bid. “Explore the concept that price is not the only issue”
“Treat vendors like your business partners”. Can start before you have a formal relationship - story about how a vendor is educating relative to the firm’s needs and industry standards prior to the sale/contract.
Dependability is key. Vendors should call right back.
Confidentiality is key - the vendor will be privy to sensitive information.
Transparency is key - providing more information helps improve trust in the relationship
Story of employees going across the street to starbucks instead of drinking office coffee - so was key to get better coffee in the office to keep them there!
Inherited relationships - what are the “sacred cows”. Entrenched relationships that get taken for granted. Relationships based on relatives, or clients of the firm. Reach out to those firms and to those who are championing that relationship.
They also happen when you are taking a new job. So check the contracts that are outstanding.
Dealing with Cold Calling
Drop-ins: Allow a dropoff of materials, and a follow-up in a delayed basis
Once you get them on the phone:
If you take the meeting, require that the vendor bring industry trend information, marketing information and competitive information. By setting a bar, you reduce the amount of follow-up, because many will not provide what you ask for. And for those who do provide information, you are getting something out of the conversation.
How to deal with calls after the conference: Ask for information that might be helpful if you think you might be interested. If you are not interested, just tell them you’re not interested.. They will move on. This saves everyone’s time, and the vendor will appreciate the “qualified no.”
Salespeople are trained to deal with “no” so go ahead and say it.
Look for support of the ALA chapter/region. They are probably more “in tune” with your needs because of their work with the ALA.
RFPs
“How many have done an RFP?” “Of you, how many would never ever do it again?”
RFPs require a significant time investment - for you and for the vendor.
Why do an RFP? Most often when they are not completely happy with their current vendor, to either put them on alert or to break away altogether. Sometimes it is a standard way of doing business to re-evaluate. (But that’s not always a best practice.)
Don’t use spaghetti method (see what sticks) - only send to those who are best in class and that you would want to work with.
Give vendor the critical information: who is the decision-maker? What is the timeline? If conditions change (e.g. things get delayed) then the law firm should let the vendor know. This will cut down on unnecessary followups that are intruding on your time.
Should the vendor participate? Is the firm looking for a relationship, or are they price shopping? Is the vendor just a stalking horse to get price concessions out of incumbent vendor?
Vendors put in a lot of work across multiple organizations to prepare the RFP. Sales, marketing, purchasing and manufacturing are all involved, but there is one point person for the conversation.
Vendor positives - education about the firm, future relationship is well defined, opportunity to showcase the company and capabilities. Can lead to long-term relationship.
Administrator positives - future relationships important, don’t burn bridges by treating vendors poorly. (Clear “no” counts and treating a vendor well). This is also an opportunity to network yourself (career enhancement) and the firm.
Vendor Negatives - Expensive, time consuming, lengthy and potentially confusing.
Administrator Negatives - Very time consuming, but very negative consequences if promises are not met, especially not communicating the clear “no.” Follow up with all the vendors, both yeas and nays.
