Top four questions to ask potential suppliers

Making a major purchase for your business should always involve discussions with several potential suppliers. Depending on the product or service you're buying, you'll get detailed product specifications, fact sheets, scope of work documents, and other detailed information — enough to overwhelm you in some cases.

No matter how buried you think you are, it's important to ask each potential supplier some of the same questions so you can be sure you're comparing them accurately. Here are the top four questions you should ask before closing any major deal.

Can I get help when I need it?
If you're spending thousands of dollars on a vendor's product or service, you're entitled to timely support when you need it. Get detailed information on what types of support are available: phone, email, web-based? Are they available any time your business is open?

Find out about escalation procedures – if the equipment you buy breaks down, how quickly can you expect a repair technician? Are there any additional costs for service contracts, or per-incident fees? Learing how a supplier will help you with potential problems can be a key differentiator among companies with similar products.

How can I see it in action?
All the fancy sales literature in the world is no substitute for actually getting your hands on the product you're evaluating. Ask vendors how you can get an up-close-and-personal look at their products: not video, not flash presentations, but the actual product. Even if it's a demo account on a web-based service, you'll want to actually use the system yourself.

The more substantial your purchase is, the more likely you'll be able to get an extended trial: construction equipment dealers and copier dealers alike are often willing to let you use your planned purchase at your location for up to a week. Take advantage of these deals whenever you can — they're a great opportunity to let multiple employees evaluate the equipment.

What are the real costs?
Of course cost is going to be a central part of your evaluation. The reason this question is important is that each vendor can structure their pricing differently, and while some differences may be obvious, others may be hidden.

Maintenance contracts are a good example — some providers may include only a certain number of incidents or repairs in their coverage, while others cover any trouble you have. And while it's not a part of the purchase price, the overall operating cost of your equipment can total many times the initial cost. Be sure to get per-hour or per-unit cost estimates from each dealer so you can factor them into your evaluation.

What happens next?
Smart businesspeople are always looking to the future: you may be making a purchase that will have an important immediate impact, but it pays to plan for growth as well. Find out how the vendor can support your business as it grows — is the product capable of handling your expected workload in a year or two years? What if you add employees?

Purchases that involve a software component have some specific concerns here. Make sure the supplier is committed to ongoing updates and bug fixes — and that you know what it takes to install those updates. Also, look for suppliers that help you prepare an exit path, letting you export your data for use in a new system, for example.

What do you think are the most important questions to ask potential suppliers? Share your favorites — add a comment below.

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