CREJ - Property Management Quarterly - August 2015
After working in the service- based industry since 1979, I have seen plenty of economic swings, and watched certain companies thrive while others go out of business. Riding the wave tends to be a challenge for most companies. The Denver commercial and industrial markets are booming. There are a lot of factors involved with this, but it really boils down to the fact that Denver is a popular place to live and work. The population boom means more business opportunities for vendors, but it’s important for us vendors to keep our eye on our clients. Developing and growing relationships is key to having a great business. As companies grow, it is even more important to be engaged with clients and industry associations. There is truth to the popular adage that people do business with people who they know and trust. This is because it is easier to make a decision based on a referral from a friend or family member than a stranger. How many times has someone asked if you know a particular service provider? Are you going to recommend someone that you never used or had a bad experience with? Heck no! As a vender in the commercial real estate industry, it is important to treat our clients – the property owners, managers and engineers – like they are a part of our family. Our clients are why we are in business. As property managers, it’s important to recognize how your vendors treat you and expect greatness. Developing and maintaining relationships isn’t easy. It takes work. Great relationship-building opportunities include joining associations and attending industry events. When times are busy, like they are today, a company may think that it has so much work it doesn’t need to belong to any association. But what happens when things slow down? Trust me, they will slow down. It happens all the time. Being a member of the Building Owners and Managers Association for the last 10 years, I have watched allied (vendor) members come and go. When times are good, they tend to drop out of associations, and when times are tough, they tend to join. This is really backward thinking. Property managers should recognize who puts in the time – both when things are going well and when things are slow. Joining an association doesn’t guarantee new business. It simply gives an entry to access new possibilities. However, if a business joins but doesn’t participate, it will be a waste of time and money. Participating isn’t just going to a lunch once a month; it includes being active in other events and committees in order to foster new relationships. This is why property managers should pay attention to association membership. It’s a great way to meet and work with vendors who take the relationship aspect of the job seriously. If a business isn’t taking care of its customers and isn’t developing new customers when times are good, the business likely will not have them when times get tough. Instead these businesses will be scrambling for whatever crumbs are left. As a manager, ask yourself how much time does it take for a vendor to truly earn my respect, trust and business? Then ask how much time it takes to end a vendor relationship? I can tell you from personal experience, it has taken months, if not years, to develop strong relationships. I have lost a few clients too, due to poor decision-making as well as discounting the relationship. It sometimes can be as simple as not responding to a need quickly. My observation is that the service providers lose track during good times, and they forget about or assume that their existing clients are happy. Vendors never should take their relationships with property managers for granted, and property managers should be vigilant to make sure they aren’t neglected. The minute you feel discounted often is the second you start looking elsewhere. In order to maintain this relationship, communication is key. The biggest complaint that I have heard is not about price but, instead, is about lack of communication. Although we have many ways to communicate today, we tend to avoid true verbal conversation. Never assume that someone got that email or text. If you’re unhappy with a vendor’s communication skills, let him know. It is then up to the vendor to recognize he needs to change to ensure he doesn’t open the door of opportunity to his competition. In order to be content with your vendors, property managers should expect vendors to be constantly engaged, educate you on new products, trends and savings, and anticipate your needs. Great businesses should believe in not only themselves, but also in their product and their people. This is realized through constant communication. If you feel unhappy with one of your vendors, pick up that phone and let him know. If the vendor is unreceptive, it might be time to look elsewhere. A vendor’s success depends on how he gives you what you need.