Volume Purchase Agreement Template

I added a VPA – Volume Purchase Agreement Template to the ETP Store the other day.

It’s interesting the way people react during economic downturns if you think about it.  They tend to over-react and do almost exactly the wrong things …. ranging from things like selling their investments at the worst possible time to making just awful business decisions.

On the business decision side of things, a particularly bad habit sales people tend to get into is talking to themselves in very negative ways.  The customer won’t buy.  The industry is falling apart.  I’m a big believer in that the way you talk to yourself can be very self fulfilling.  If you’re positive it projects just as it does when your negative.  Attitude is everything.

Time for a reality check.  Regardless of the gloom and doom that we hear daily about the economy and the world from government and media, we have to recognize they have a vested interest in presenting things in the negative and sensational way that they do.  When you do a reality check in your own business or situation you will probably find that depending on your business, your overall sales for this year may be down 5-10%.  On the other hand if your McDonalds, Walmart, or a SaaS company, you may very will be looking at 10-20% growth for the year.  Neither situation warrants that kind of negativity.  You’ll never succeed thinking or talking to yourself like that.

The backwards thing that companies do in recessionary periods is begin or expand their sourcing organizations and start a “bidding process” with the idea this will save them money.   Talk about an ill conceived idea.  Bidding is a one off, loose-loose scenario.  It is extremely costly and time consuming.  It yields no long term dividend.  It is money that is literally washed down the proverbial business drain, never to be recovered.

This brings me to the VPA.  In all economic climates and particularly during business downturns, Volume Purchase Agreements and partnering with your clients and vendors is a win-win and makes great economic sense.  Think about it this way.  The parties get together and tighten their relationship and commitments for a long term.  They begin to tighten up their business processes so their actual costs are lower and their businesses run more efficiently.  Both businesses are actually more profitable than they were without the relationship and certainly far better off than either would have been doing the bidding war.

So, get a positive attitude and talk with your customers about building a long term relationship. 

When you do, bring them this VPA to sign.

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