Vendors
Ron Graham
Extracted from the sci.engr.* FAQ on Innovation and Product Development
The Four Laws of Dealing With Vendors

I You know the application. The vendor knows the product.
II The more information you give, the faster the turnaround and the more reliable the price.
III The closer your choice is to a stock item, the better the service.
IV The vendor wants you to succeed, knowing that if you do you will pay your invoices for a long time.

First Law. Contacting vendors turns out to be a golden opportunity for the young engineer (any engineer?) to learn not only about the vendor's specific product line, but about the type of product in general. At first, it's likely that the product you are shopping for has more characteristics than you need to know for your application. (If you're looking at a menu, you choose your dinner on the basis of cost and what's in it -- not on the individual "Nutrition Facts.")

In one example, a contributor was looking at load cells, and one load cell manufacturer gave specs on the following: rated output, excitation, accuracy, linearity, hysteresis, repeatability, zero balance, creep, operating and storage temperature, thermal effects, maximum load, bridge resistance, deflection, materials used in construction (both of structural and electrical parts), height, weight, bore, compatible meters, rated capacity, and cost. The contributor's interests were rated capacity, geometry and cost. That other stuff is listed in the catalog for a reason, and no doubt that reason is related to some customer's needs. Knowing what others care about in their purchases may guide you in a purchase down the road, when your own requirements are more severe.

Talk to vendors on the phone. You can nearly always learn about how their thing works, and what you should be looking for in a purchase. In another example, a contributor was looking for electric winches for pulling wire rope. The first vendor explained why the winch's drum size is closely related to its rated pull and power draw. The second vendor explained why the rated pull of the winch is only about one-sixth to one-fifth the rated strength of the cable. The third vendor explained how a winch can backdrive, what the consequences are of the backdrive and how to avoid potential problems in winch selection. The contributor also learned also about grooved drums, mounting technique and noise.

Use vendor catalogs. They can contain a wealth of knowledge of product fundamentals. The Editor has not seen a large number of them, but he recommends as examples Omega Engineering catalogs because of the info they contain about fundamentals of sensing devices; and the National Instruments "Instrumentation Reference and Catalogue" for data acquisition fundamentals. Best of all, such catalogs are to be had for FREE.

Design spec sheets for your application. In the winch example, info sheets listing requirements on winches, and on wire rope, were faxed to dozens of companies in each of the two areas. This task quickly eliminated three-quarters of the possible companies from contention. Which leads to the Second Law.

Second Law. Why will you find so many companies in the area you are looking for?

  • You may not be sure who to contact up front, unless you have done this before.
  • The trade literature doesn't list vendors according to your specific needs. For instance, the Thomas Register lists over a hundred companies under "Winches: Electric." Although the Thomas Register has a search engine at its Web site, which will reduce the number somewhat, the reduction will not specialize your search any further. No search engine is smart enough to recognize your requirements.

At the Chinese (for example) restaurant, if you tell the person taking your order up front that you require your meal to be spicy, contain no shellfish and no MSG and no baby corn, then that helps you get a meal to your liking with no long wait and no surprise cost. In the same way, the faxed requirement sheets may keep you from having to call each company individually -- and no doubt from playing "phone tag" with some. You may even locate a company with something on the shelf that meets your needs. Which leads to the Third Law.

Third Law. If you choose something off the menu, it may cost more, it may take longer, and they may not even have it at the restaurant. The same contributor encountered this when trying to purchase conduit for the wire rope. The wire rope was aircraft cable -- which has a rated diameter with a tolerance of ten percent -- the "rated diameter" is actually a "minimum." They wanted conduit that would permit the cable to pass without slop, but would also accommodate the relatively huge tolerance in cable diameter. (This is expensive.)

Buy multiple related items from the same supplier when possible. You may (in this example) find you are better off buying both cable and conduit from the same supplier -- even if it means letting a spool of aircraft cable go to waste. If a vendor doesn't have what you want, that vendor would either not bother to respond or send a polite "decline to bid."

Let the vendor be the expert on the vendor's product. Our relationships with vendors can make us more productive, by actually eliminating the need for our project engineers themselves to be experts on the type of product the vendor sells. Follow as much as is practical the vendor's recommendation.

Fourth Law. Why should it be that a vendor (whom you have never met) would be interested in your success? Because if you succeed, and if you attribute your success (in part) to that vendor, you will do business with that vendor for a long time. A satisfied customer is worth more than Gold-Pressed Latinum.

If you pay your bills early, you can get a line of credit later. If your bills are small and your product especially promising, you may get that line of credit early. Don't hesitate to ask for it -- but be careful how you approach it. You must remember the First Law of New Technology: no-one wants to be the first to buy it. So in approaching vendors, as you would in approaching potential investors, you must concentrate on the promise (and the market niche) of the technology, rather than on its developmental aspect.

Don't hesitate to let the vendor know how you're doing. Establish a personal contact at the vendor's shop. (Most will want to give you one. That person will probably be referred to as an "account representative," or something like that.) If you have a personable relationship with that representative, then you have an advocate at the vendor's shop. Comes in handy.

Characteristics of "Good" Vendors

These are in alphabetical order. You can decide which are the most important for your needs.

Experience A good vendor knows "the business." They can tell you if you're going in the right direction. They can provide alternatives which may even fall outside the product line.
Flexibility Most vendors "specialize in large runs." Well, of course they're going to specialize in orders likely to bring in the most money. But a good vendor, even if unable to accommodate a very small run, will come up with an alternative: perhaps a stock item that's close and they'll let you have it FREE or on a long-term "loan."
Knowledge A good vendor knows the product. Not just what it says in the catalog, but actual applications. The vendor should be able to go out and look at an installation or drawing and make suggestions with merit quickly. Newbies will make a call to someone at their firm for help.
Persistence A good vendor will call on you even though you don't order anything for some time. They know if they are there now, you'll be more inclined to think of them later.
Timeliness A good vendor will have the information within a day or so, even if you don't need it that soon. Some will have a sample in stock for you to try out for FREE.

Characteristics of "Bad" Vendors

Poor Service Calls not returned; problems not taken care of. Why should such a company be rewarded for poor service? On the basis of its name? Or because "we've always done business with them?"
No Professionalism Some vendors give out business cards with nicknames; some give out silly and inappropriate toys; some make racist, sexist, or simply stupid comments; some argue with you about your project, or tell you it won't work. Why should you pay someone to make you put up with all this?

How to Find Vendors

The Thomas Register, or Vendor Directories. Since the Thomas Register is on the Web (and on CD-ROM), you might be able to get by without, you know, actually buying that couple hundred pounds of catalogs they put out in print. (A small company is always looking for the main chance.) But many, many vendors are getting on the Web, and many of them will no doubt be found at www.(insert company name here).com.

Trade magazines. These also prove very useful guides to locating vendors. Machine Design, for instance, annually publishes a "Product Locator." The trade magazines are often kept afloat by their advertisers, and thus you can get subscriptions to some of them for FREE. Be careful with your request, however: Machine Design (for instance) is one publication that routinely rejects requests for free subscriptions from very small companies. Some from small start-up companies lie about how many people they work with to get these subscriptions.

The vendors themselves. One participant in this discussion saves time by demanding that what he buys be second-sourced. "Ask your vendor who supplies the same thing? And the list gets self-generated. Next, ask each one why you should buy their product and not from their competitor (be specific) You'll be amazed at the 'inside' information you'll get. Also, ask for a list of satisfied customers and talk to them, after all you don't hire a potential employee without checking their references why would you buy a product from someone without checking theirs?" The reasons this idea is so good are as follows:

  1. Many of our employers would have the multiple-sources requirement on paper anyway.
  2. Each vendor runs into the same competition over and over.
  3. Some of them send business to each other occasionally as a matter of course -- when the competition has a peculiar specialty the vendor in question doesn't have.

Manufacturer's reps. They will sometimes represent several companies with similar products, saving you the hassle of dealing with multiple companies. One contributor claims to be able to limit a product search to 2 or 3 reps, rather than 10 or more individual companies. The reps are good at giving comparisons among the companies, and they are usually very knowledgable about their field.


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