Preferred Vendor Agreements

If you are not in an organization`s preferred lender agreement, the first step is to learn how to get on the list. Who should you talk to and what channels should you talk to? If you already have a relationship with someone in the organization, this can be a good place to start. But don`t jump straight into it. First, you need to know what the organization`s requirements are before asking the tricky questions. If you`re not currently on an organization`s preferred lender list, you may be wondering how you can do that. You need to answer the following questions: If you know that an organization already has a preferred supplier contract with another party, be prepared to impress your potential customer if you want to win a contract with them. A preferred lender agreement is a contract between an organization and a creditor that explicitly defines the terms of their relationship. Many large companies negotiate these agreements with hotel brands, venues and other suppliers because they set clear expectations, improve the efficiency and simplicity of event planning, and increase cost savings through leverage. The worst part of these deals is how they try to sell them to the meeting or event professional; “We chose them because they offer the best service,” “They met our strict criteria.” Blah, blah, blah.

In fact, through a few websites, some event venues describe their preferred suppliers: large organizations like Siemens or Pfizer tend to design and use their own contracts for preferred supplier agreements rather than using contracts that have been compiled by hotels or suppliers. So if you`re targeting such accounts and you don`t have a privileged agreement right now, don`t expect to use your traditional internal agreement. If you want their stuff, you have to show them that you can play by their rules. These pre-approved contracts often contain a wear and tear clause that ensures that companies comply with tariffs, food and beverages and other contractual obligations, which helps reduce the seller`s risk and exposure. In exchange for these guarantees, organizations tend to benefit from lower rates and other special treatments. To me, the exact problem is not that sellers pay to be on a preferred supplier list, the problem is that suppliers and places treat these stores as a dirty little secret and pretend to be ashamed of them. There is no transparency. The simple act of concealing agreements means that there could be dirty business, and if so, it is the end user (meeting planner) who gets the well.