15 Key Factors to Consider When Choosing a New Vendor

A man is standing in front of a white board and writing
A man is standing in front of a white board and writing
15 Key Factors to Consider When Choosing a New Vendor

Selecting the right vendor is crucial for business success, so we’ve gathered insights from CEOs and founders among others, to share their wisdom. From assessing a vendor’s client respect and reliability to seeking flexibility for project adjustments, explore the diverse perspectives of fifteen experts on the key factors they consider when choosing a new vendor.

  • Assess Vendor’s Client Respect and Reliability
  • Align Vendor Vision with Brand Story
  • Consider Vendor’s Business Setup and Support
  • Ensure Vendor Compliance and Performance
  • Value Transparency in Vendor Partnerships
  • Choose Adaptable Vendors for Long-Term Growth
  • Seek Custom Solution Providers with Experience
  • Prioritize Product Quality and Certifications
  • Evaluate Vendor’s Tech Compatibility and Innovation
  • Conduct “Reddit Smell Test” for Reputation
  • Demand Accessible Customer Support
  • Select Vendors with Cultural and Value Fit
  • Choose Vendors Sharing Sustainability Values
  • Prioritize Vendor Reliability and Responsiveness
  • Seek Vendor Flexibility for Project Adjustments

Assess Vendor’s Client Respect and Reliability

It’s best to see how the new vendor treats you before partnering with them. Do they respond back to you in a timely manner? Do they follow through when they say they will do something? Do they show up promptly for the agreed-upon meeting time? Make sure the vendor you’re looking into aligns with what you want to achieve and has high respect for their clients and/or customers. Any signs that show otherwise indicate that you will likely face challenges with the vendor in the future.

Jessa Farber, Director of Creative Operations, Bristol Associates, Inc.

Align Vendor Vision with Brand Story

When selecting a new vendor, I prioritize their ability to understand and align with my brand’s vision. It’s not just about the products they offer; it’s about how they can enhance my brand story. For instance, when I started my company, I partnered with a supplier who truly grasped the aesthetics and quality I aimed to deliver. This alignment allowed for seamless collaboration and innovation in our offerings. A vendor who shares your vision can significantly enhance the quality of your products and the overall customer experience, reinforcing the values your brand stands for.

Ketie Zhang, Founder, Ketie Story

Consider Vendor’s Business Setup and Support

The most important factor is understanding what your needs are and choosing a vendor that can meet them. By this, I don’t mean that they provide the required service, but rather that their business setup is one that can support you in the long term.

If you are a small business, or have fluctuating requirements, contracting a vendor that is small to medium-sized, privately-owned, can enable you to negotiate that extra flexibility in terms. If you are a business in a period of high growth and expanding geographically, choosing a vendor with an international presence can be an easy way of scaling up operations without sacrificing standards.

The vendor’s business setup is as important as the service or the pricing they can provide.

Alexandru Samoila, Head of Operations, Connect Vending

Ensure Vendor Compliance and Performance

Compliance is absolutely key in our industry. We need vendors who understand the intricacies of government contracting and have a solid history of meeting federal requirements. Their past performance on similar projects is a major factor—we want to see concrete results. I also look for vendors who are proactive in staying updated with changing regulations, because that directly impacts our clients’ success. And let’s be honest, competitive pricing is always important, but it’s got to be balanced with quality and reliability.

Josh Ladick, President, GSA Focus

Value Transparency in Vendor Partnerships

We value transparency above all else when selecting new vendors. I’ve learned from my time at Hewlett-Packard that clear communication and openness about capabilities and limitations are crucial for building lasting partnerships. Our team always looks for vendors who can provide detailed breakdowns of their pricing structure and are willing to discuss potential challenges openly.

Gregory Rozdeba, CEO, Dundas Life

Choose Adaptable Vendors for Long-Term Growth

For me, one of the most important factors when choosing a new vendor is how well they can adapt to my business as it grows. I’m always thinking long-term, and I want to know that a vendor can grow and evolve with us, not just meet our current needs. Flexibility and a willingness to collaborate are key, but so is communication. If a vendor is proactive and easy to communicate with, it usually means we’ll have a strong, smooth working relationship.

Dan Ponomarenko, CEO, Webvizio

Seek Custom Solution Providers with Experience

As the founder of a technology and healthcare solutions company, an important factor I consider when choosing a new vendor is their ability to provide custom solutions. We serve both government and private sector clients with complex needs, so vendors must prove they can develop innovative solutions to meet specific requirements.

For example, when selecting a subcontractor for a new software project, I evaluate how well they understand our client’s needs. Do they ask insightful questions and provide options for how to best achieve outcomes? Or do they come in with a one-size-fits-all solution? The ability to customize is key.

I also consider a vendor’s experience serving clients in regulated industries like healthcare. There are many compliance requirements and security concerns to navigate. An experienced vendor will have proven processes for mitigating risk and ensuring quality. They understand the importance of testing, auditing, and validation to meet both industry standards and client needs.

Finally, communication and customer service are vital. Our clients expect high responsiveness, so we choose vendors able to provide support 24/7 and address any issues quickly. They should communicate clearly and regularly, keeping all stakeholders informed of progress, risks, and solutions. The right vendor becomes a true partner, not just a service provider. With the correct vetting, a vendor that meets these criteria can drive innovation and help our clients achieve their goals.

David Pumphrey, CEO, Riveraxe LLC

Prioritize Product Quality and Certifications

I prioritize product quality and certifications, ensuring the vendor meets industry standards like GMP and NSF certifications, while also evaluating their pricing and reliability to maintain a consistent stock for our customers.

John Frigo, eCommerce Manager, Best Price Nutrition

Evaluate Vendor’s Tech Compatibility and Innovation

When choosing a new vendor, one crucial factor I always consider is their ability to seamlessly integrate with our existing technology and workflows. In the realm of AI and technology, compatibility is essential for ensuring that new solutions complement our current systems rather than creating additional complexity.

For example, when selecting a vendor for AI tools or services that will enhance our app, I look for vendors whose technology can easily interface with our existing infrastructure. This includes evaluating their API capabilities, ease of integration, and how well their solutions align with our current tech stack. I also consider their track record of reliability and customer support to ensure that any integration issues can be promptly addressed.

The goal is to streamline operations, not complicate them. If a vendor’s product requires extensive customization or does not align well with our current systems, it can lead to increased costs and project delays, impacting our efficiency and productivity. On the other hand, a vendor who offers seamless integration can significantly enhance our operations and help us maintain a high level of service for our users.

In addition to technical compatibility, I also assess the vendor’s commitment to innovation and support. Since we heavily rely on AI technology, it’s important that our vendors are not only technologically advanced but also committed to ongoing development and improvement. This ensures that we can continue to leverage cutting-edge solutions and stay ahead in the rapidly evolving tech landscape.

Spencer Christian, Founder, Christian Companion App

Conduct ‘Reddit Smell Test’ for Reputation

Reputation. To me, vendor reputation is everything, and I have a unique way of assessing it. I usually conduct what I call the “Reddit smell test.” Before signing a contract with a new vendor, I typically look for Reddit comments about them. I skip all the positive comments and focus on the negative comments, if any. I want to hear from people who have had a bad experience with the vendor and how their cases were handled.

For example, a while ago, I was looking for an all-in-one software management system, and the majority of Reddit users didn’t like the vendor I had settled on, citing various reasons. I ended up not signing the contract because I trusted the comments from these users more than anything else. I don’t like reading reviews from review sites such as G2 because almost every vendor I have worked with has offered me a monetary incentive to say something nice about them on these sites, which defeats the purpose.

Mitchell Cookson, Co-Founder, AI Tools

Demand Accessible Customer Support

The availability of customer support is the most crucial factor we consider when choosing a new vendor because implementation and migration issues are standard during the initial few days. No matter how intuitively products are designed, a certain amount of hand-holding is necessary when starting off. We typically look for vendors that offer customer support during working hours, alongside a designated representative. Quality customer service usually stands out in reviews and recommendations, so it is generally easy to identify vendors who offer enhanced support.

Joshua Webb, Head of Growth, Kinnovis

Select Vendors with Cultural and Value Fit

Cultural fit is crucial when selecting a new vendor. We’ve found that alignment with our values and development philosophy leads to more effective partnerships and better outcomes for our clients. In fact, last year we chose a leadership training provider whose approach perfectly complemented our MBTI-based methodologies, resulting in a 30% increase in positive feedback from participants. It’s not just about skills and pricing—it’s about finding partners who share our commitment to maximizing human potential.

Barbara McMahan, CEO, Atticus Consulting LLC

Choose Vendors Sharing Sustainability Values

As an eco-friendly printing business owner focused on sustainability, an important factor I consider when choosing a new vendor is whether they share our company’s values. This includes their use of and transparency around eco-friendly, ethically-sourced materials as well as sustainable business practices. Its critical partners understand and implement best practices to minimize waste and maximize efficiency.

For example, when I evaluate paper suppliers, I visit their mills to ensure materials meet the highest environmental standards. The mills we choose are FSC-certified, use 100% recycled fibers, and renewable energy like wind or solar to produce their paper. I expect vendors to provide examples and data demonstrating how their practices reduce environmental impact. Those unable to do so likely won’t make the cut.

Location and transportation methods also matter. Choosing local vendors within our community helps cut costs and decrease emissions from shipping over long distances. During the onboarding process, I expect new vendors to share specifics on how they’ll minimize transportation needs and carbon footprint when providing their services or delivering products. If their practices don’t align with our values or they can’t provide transparency into their operations, it’s not a good fit.

At the end of the day, the vendors we choose to work with reflect directly on our brand and mission. Supporting others in our community who share our commitment to sustainability and environmental stewardship is key. Our partners must walk the walk, not just talk the talk. If they can demonstrate through actions and data how they minimize waste and maximize efficiency, that’s the kind of value-aligned relationship we want to build.

Greg Barber, President, Eco Friendly Printer

Prioritize Vendor Reliability and Responsiveness

As a roofing contractor with over 25 years of experience, an important factor I consider when choosing a new vendor is reliability. I can’t afford delays or subpar workmanship on my projects. I look for vendors, like suppliers of shingles or metal panels, who have a proven track record of on-time delivery and high-quality products. If they’re not dependable, it reflects poorly on my business and frustrates my customers.

I also value transparency and responsiveness. The vendors I partner with openly share details about their products, pricing, and availability so I can properly plan projects and set accurate timelines. And if there’s ever an issue, I need to know I can reach someone right away to resolve it. For example, when a shipment of shingles was damaged in transit last year, my supplier sent replacements immediately and covered the cost, allowing us to complete the roof on schedule.

Finally, good value is key. I strive to provide affordable solutions to homeowners, so I look for vendors who offer competitive pricing and are willing to negotiate when possible. But the lowest bid isn’t always the best choice if it means sacrificing quality or service. The vendors I choose to work with help me keep costs in check while maintaining high standards. My clients get a roof they can depend on for years at a price they can afford.

Justin Kalcevic, Owner, C.Kalcevic Roofing and Contracting

Seek Vendor Flexibility for Project Adjustments

One of the biggest questions I ask myself when considering a new vendor is how flexible they are. In the construction and home-improvement industry, schedules can change quickly—delayed orders due to weather, late delivery of a key component, a last-minute change in design, or a customer who feels unexpectedly standardized. A vendor who can pivot, adjust an order, scale back or increase a commitment to work with shifting realities is a dream come true. I look for vendors who are not just set in their ways but who can think on their feet and adjust to the realities of our projects.

That flexibility is more than simply sending stuff on time. It’s a supplier who comprehends our struggles and is prepared to brainstorm a solution with us. Maybe we need an alternate material because something just went out of stock. Maybe a schedule is out of whack, and we need to rush through an order. I’m more excited to work with someone who can carry me through those details, rather than another cog in a machine that says, “We have a process; we all follow these steps.”

Tyler Hull, Owner and General Manager, Modern Exterior

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