Negotiating Long-Term Partnerships for B2B Jewelry Businesses

Stable, long-term partnerships are the dream for both retailers and vendors. They’re beneficial to both parties. They’re beneficial to customers. They lower costs for vendors, as the cost of acquiring new customers is much higher for B2B than B2C businesses. On top of that, B2B has a much longer customer journey and sales cycle than B2C, with various stakeholders deliberating for months on end in search of the best partnership, which means it takes time to start seeing those customer acquisition costs come back in the form of revenue. On the retailer side, cutting ties with a vendor and searching for a new one brings unforeseen costs and causes unwelcome disruptions for the retailer and their customers. Stability is good for everyone.

As important as they are, healthy business relationships built on trust and mutually beneficial results are hard to come by. B2C businesses want vendors who can reliably supply them with the products their customers want and can grow with them, while B2B businesses are looking for customers that can provide high lifetime value, which requires both customer loyalty and growth. Too many potential partnerships, however, are never given the chance to grow. Before you head to the negotiating table, make sure you go in with the right mindset, the right tools, and the right knowledge. Here are some tips for doing just that.

Negotiation Is Cooperative, Not Competitive

Zero-sum thinking is a belief that in order for you to gain something, someone else has to lose something. If a potential client seeks a concession during negotiations, for example, a zero-sum thinker would believe that making the concession is a defeat for them and a win for the other party, who they see as a competitor rather than a partner. If terms are favorable to me, I win, says the zero-sum thinker; if I make concessions, I lose.

Negotiation isn’t a zero-sum game with a winner and a loser. In any relationship, even a business relationship, there is a give and take, and both sides will change as they move closer together. The trick is to look at this change not as a loss but as growth. Growth is change, and to grow, you have to accept that you’ll be different at the end of a journey than you were at the beginning. The two sides aren’t in competition; they are working together to get their expectations in alignment and create something new. And if they can’t reach an agreement, that cooperative relationship doesn’t end; it just changes. You may not have gained a client, but you have established a relationship that can help you network and build your reputation as a cooperative negotiator.

Understand Your Value and Your Values

Before sitting down with a potential client, know what your business stands for and what value it is capable of delivering. A smaller retail partner aligned with your vision may be better for your long-term success than a larger account with different goals and expectations. Landing a big client might provide a huge short-term gain, but finding a client who shares your ideas about growth, your approaches to marketing, your communication styles, your documentation and conflict resolution processes, and your overall business strategies will potentially provide greater lifetime value.

Approach Negotiation Strategically

Seek out potential partners strategically, not based on vibes. Someone you get along with on a personal level might have very different goals for, and ideas about, business than you. Put your strategy and long-term goals first, and ask yourself how this partnership will help you achieve those goals.

Make sure that your potential partners understand your strategy and goals from the beginning, and ask them to outline theirs. If the very foundations of your business philosophies diverge, any partnership is unlikely to be a long-term one. You might make a sale, but you won’t develop a partnership that delivers high lifetime value.

Gather Data

Before negotiating terms of a deal, understand what your needs are. Calculate your customer acquisition costs, which covers all of your sales and marketing expenses: salaries, ad spend, spending per channel, and other associated investments and costs. Calculate the lifetime value you expect this partner will generate. The right data will give you a clear picture of what exactly a good deal looks like.

Build Relationships, Even if You Don’t Close the Sale

Throughout the process, remain respectful and amicable, even if a deal falls through. A retailer might not think a vendor is the right fit for them now, but they might change their mind later, so don’t ghost them after they give you a “no thanks.” Stay in touch and follow up with them periodically. A pleasant negotiating process, even if it results in no sale, can benefit your business. You’re building a reputation for respect and honesty, and you’re building a network of industry relationships. It’s all part of building the long-term strength of your business.