What Is A Preferred Vendor Agreement

These agreements often have a wear and tear clause that ensures that the organization meets contractual obligations. B, such as the provision of food, drinks and withdrawal rates. This reduces the risk and exposure of the supplier. One of the worst aspects of preferred supplier agreements is how they are often sold to event professionals. For example, event venues will often show their perfect and excellent suppliers with descriptions they place online or in brochures. You can describe them as “superior,” “hand-picked,” or “excellent.” Unfortunately, the fact that event and meeting professionals and clients simply accept these claims without knowing if they are actually true can lead to a disappointing experience. If you plan to align an account that has an existing preferred lender agreement (on which you are not), you need to strengthen your game if you hope to succeed. Knowledge of event planning processes is essential – and you need to familiarize yourself with the organizational structure of your meeting department. The trick is to do your homework – research, research, research! As an event professional, you may think you`re pretty knowledgeable about preferred supplier agreements, but there`s actually a lot of misinformation going around. What was true a few years ago is not necessarily true today. 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: In return for these assurances, organizations generally get special treatment, including lower prices.

Large companies prefer to design these agreements themselves rather than use the lender or hotel contract. If you are a supplier without an up-to-date preferred lender agreement, don`t expect the organizations you are targeting to use your standard internal agreement. As a consumer, you can try to use your own supplier, but it might be impossible or too expensive to do so. In this situation, you may face many difficult decisions and none of them seem to be good. The best thing you can do is talk and demand for yourself to see exactly how the organization chooses its favorite suppliers. Request to look beyond contracts and pay attention to the fine print. If you know that an organization already has a preferred supplier contract with another party, you should be prepared to impress your potential customer if you want to win a contract with them.