Getting big-company business: People & Companies

Large companies can represent sizable amounts of business for machine shops of all sizes. Grabbing their attention, gaining access and getting an opportunity to be on the approved-vendor list requires a different strategy than when targeting small to medium-size companies, where personal relationships are easier to develop. If growth is part of your business model, landing contracts from the big guys can help fuel that growth and generate healthy revenue streams.

I’m loosely defining a “big company” as a corporation with 500-plus employees that’s likely to have a formal supplier-approval process and a secure facility, making it all but impossible to gain entry without an appointment. So, how does a machine shop add big-company accounts?

The good news is it’s not impossible, but it will take some effort. Like anything, working with large corporations has its benefits and drawbacks. Be prepared for the many formalities, policies and requirements that are part of the relationship. Terms and conditions are weighted in their favor, and large companies may or may not respond to your concerns, depending on how critical your shop is to their supply chain.

If they have a need and are convinced your shop is the answer, you can get on the fast track to approval. If your shop wasn’t sought for anything in particular, prepare for the long route, with no guarantee of getting any worthwhile business. Positioning your shop as the solution to their problem is key.

Ensuring your company is considered for any new work simply requires creating an awareness of your shop and its capabilities. Building that awareness is done through relationships you’ve developed professionally and sometimes personally. Effective sales and marketing programs work, along with opportunities to meet people and inform them of your company and experience. When a large company requires a new supplier, hopefully a decision maker will remember meeting you at some function, event or trade show. If they have no idea your shop exists, you won’t be getting a call.

Don’t underestimate the value of casual meetings and discussions either. I’ve met many business people at my kids’ sporting events, including fellow parents who worked for big corporations. Later, we were contacted by their representatives simply because we had built a rapport outside of work. Some of these referrals eventually generated work for our company.