Buying Cheaply can be very expensive :-)

Welcome back to "Just One Small Thing". My aim is to share short and simple tips that you can implement straight away to start improving your small business today. Would that be useful?

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When you hire a business coach one of the first things they do in order to get "quick wins" and justify their own fees is to go through all your expenditure and search for saving. On the face of it that sounds like really good business sense. Why pay more than you need to as long as the product or service is still delivered?

In my very humble opinion, that only works if you don't rely on a business community to help you attract new customers with a regular stream of referrals and recommendations. Basically, it only works if you really don't care who you deal with as long as they're cheap.

I'm a very keen business networker here in Milton Keynes (England). I even run my own regular alternative Business Networking Club called The Business Growth Club Milton Keynes. I've deliberately developed an alternative, less salesy culture for this club. Most people love it and a few don't like it. It's "marmite", just like me.

Sadly, most people who go networking have been persuaded to do it purely as a potential sales channel for their local small business. Obviously, it can work really well for that, if you do it right. However, if everybody is just selling and nobody is buying it won't work for anybody. So, I'd like you to flip your idea of business networking on it's head. It's a great place to buy personally delivered trusted goods and services from people who you meet regularly that you can hold accountable.

Here's my hierarchy of who you should buy from and in the order you should consider them.

1. Your customers
2. People who you network regularly with in the same group or club
3. People who you network with irregularly who you meet at other events
4. Recommendations from your customers who they actually use
5. Recommendations from your regular networkers who they actually use
6. Recommendations from your irregular networkers who they actually use
7. Recommendations from your LinkedIn First Degree Connections who they actually use
8. If all those are exhausted make sure you've done your research and read authentic reviews.

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I'm not saying you have to do it this. I merely offer it as a sensible starting point if you want to grow your business.

1. If you buy from your customers you will deepen your relationship with them and they will keep buying from you. They'll also feel more inclined to recommend you to other people they know and your business will grow organically.
2. If you've joined a regular business networking group presumably you're interested in being part of a thriving local business community that will grow. Buying from people you network with regularly will bring you more business because they'll want to return the favour and also deliver regular referrals to you. You'll get known as someone who gives before the receive.
3. If you buy from irregular business networkers that you meet at other events you may persuade them to join your group and grow your business community. People like to go where their customers are so everybody else hears how great they are from a genuine client. You'll also widen and strengthen your network outside of your regular meetings. This is why I go everywhere that I can.
4. Asking your customers to recommend someone they use will help to build their trust in your even further. People like to be asked for advice from a friend. It will also build their relationship with whoever they recommend you to so it's a win win for your customer.
5. Your regular networkers are "word of mouth" experts. They'll know who's good and who isn't. One small thing to be careful of here is people who may be affiliates and are only recommending you to someone who'll pay them a commission. You need to ask all the right questions.
6. Your irregular contacts at business networking events will also love being asked for advice and want to help you because that's what business networking is all about. Again, be cautious about people who are on commission. You also need to be cautious about people who just recommend someone who they network with regularly which most often happens with BNI members. Make sure they've actually worked with the person they're recommending rather than doing them a favour.
7. Direct message your local first degree LinkedIn connections. They'll enjoy the engagement and want to help. That engagement may also encourage them to meet you face to face and not just online.
8. Lastly, if all that fails to provide a good potential supplier do some proper research for the most local company that can offer a good deal for exactly what you actually need. Make sure you read reviews "between the lines" for actual proof of a good service. Check them out on LinkedIn and see if you have any LinkedIn connections who've used them. Don't just buy because they're cheap.

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I'm not saying buy goods and services at any price just because someone you know has recommended them. Their recommendation may be wrong because their assumptions of what you need may be different to what you actually require. However, if the price is a little higher than the absolute minimum you can get on the internet I think the upside potential of what else may come from the relationship is well worth the extra cost.

Let me give you an example from a my own experience. I supply print and direct mail to a variety of clients with a diverse range of needs. When I meet new people I like to introduce them around my network so they can be a part of the local business community. Some years ago, I met a lady at an event who was new to Milton Keynes. She'd bought into a local magazine franchise and was keen to find customers. I managed to introduce her to some new customers directly and to some networks from which she gained even more customers.

I printed her first magazine and it became apparent that her design skills were not good enough or quick enough to produce her own artwork. So, I spent quite some time helping her find an affordable local graphic designer who could produce print quality artwork efficiently and quickly. I even sat with her when she interviewed the local graphic designers to make sure she asked the right questions and got the right answers. You may think that was all above and beyond the call of duty. It's just what I do, I like to help people. That's what true business networking is all about.

I printed her next three magazines. I called her to ask when I should expect the artwork for the fourth and she told me that she'd found a cheaper printer. When I asked her how much cheaper it turned out to be just £100 on a £2,000 cost. She'd gone ahead and ordered from a government subsidised factory in South Wales. Not only that, she had to sign up to a 12 month contract to get the lower price. I was gobsmacked after all I'd done for her for free.

This lady was by then a member of BNI. I asked her how many referrals for her local Milton Keynes magazine she expects to get from her new printer in South Wales. The phone went silent as the very heavy penny dropped. She hadn't even considered how much potential new and existing business she was risking losing by not using someone local. It was going to be far more expensive than the £100 she thought she was saving.

It's amazing what you can buy for your business and yourself from people who network with locally. Make your supplier base into part of your local business community and you'll do better and be served better. They can't afford to let you down :-)

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