What to do when your trade partners stop buying from you

August 14, 2023

Recovering your partnerships with trade partners when they stop buying from you

Doing business with trade partners is centred around honesty, efficiency, and reliability. If a trade partner has stopped buying, it means you are lacking at least one of these traits, and that can spell bad news for the business as a whole.

Not to mention, trade communities can be close-knit and vocal, so if there is something that your company is doing wrong, this information will spread quickly and could jeopardise potential partnerships in the future. 

What you mustn’t do is panic, however. Just because trade partners have stopped buying doesn’t mean you have a problem that can’t be fixed. In fact, for the most part, issues with sales can be easily fixed. 

3 Questions to ask yourself when a trade partner stops buying

To get to the bottom of the problem, we’ve listed out three questions that you should ask yourself, helping you to get your trade partners back and make sure the relationships are stronger than ever.

What is their incentive?

Looking at the floor distribution market for a second, this was projected to be worth nearly $250 billion in 2022, with an expected CAGR of 5.2% between 2023 and 2030. This means that floor distribution companies have a lot of options. You need them far more than they need you, as there are multiple competitors who can take your place if something is not quite right. 

For this reason, you’ve got to ask yourself: what is their incentive? Are there reasons for them to increase their spending and remain loyal? A trade incentive can be perfect if you want to keep customers loyal to you and outside of the reach of your competitors. Make sure that you take a close look into this and invest in an incentive programme that doesn’t just offer monetary rewards but rewards that are tailored towards specific trades and partners.

Is the team developing?

What worked for your company a few years ago might not necessarily work today because the business world is a constantly changing beast. With the introduction of new business tech – including AI, VR, and 5G – ordinary processes can easily change and become outdated, so you need to make sure your employee base is accustomed to the changes. 

Investing in training sessions to further develop their skills and efficiency is a great way to ensure you stay ahead of the tide. When it comes to your trade relationships, this will also demonstrate to your clients that you are prepared to grow as a company and that your workforce is ready and willing to upgrade how they do things to better the overall customer experience.

Are you listening?

Lastly, no matter who your partner is – plumbing, electrical wholesale, building merchant, decorating center, or another wholesale business – they will all have opinions on the relationship and your company itself. It is important, then, if sales are going down, to listen to those opinions and glean some much-needed feedback. If you do this, then you are not only likely to diagnose the problem, but you will strengthen the relationships through the process alone. 

Customers want to feel valued and heard, so if you give them the space to feedback to you, then they will recognise that your company is invested in the relationship and is looking for ways to improve their experience. This could be a crucial step in assuring transparency and deepening the existing relationships that you have – which will subsequently boost your sales and ensure a longer customer lifespan.

Conclusion

When trade partners stop buying, it signals an underlying issue in the relationship that must be addressed. Start by analyzing their incentive to stay loyal versus pursuing other options. Implement targeted incentives that offer unique value, not just monetary rewards. Next, ensure your team is developing skills to meet changing business needs; invest in training for efficiency and tech fluency. Finally, listen to partner feedback and concerns to show you value the relationship, seek improvement, and assure transparency.

Though concerning initially, a drop in purchases presents an opportunity to understand your partners better, evolve intelligently, and cement mutually beneficial bonds for the future. With care and effort, this challenge can become a catalyst for positive change.

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