How Do I Evaluate Vendors? How Do I Know Which Service is Best?

Question: How Do I Evaluate Vendors? How Do I Know Which Service is Best?

Answer: If you are considering hiring a vendor or outsourcing work to an external company, you may be wondering how to be sure the company or person is honest and whether they will do a good job. Key questions to ask are:

• About the Company
  Is this a reputable company? How long have they been in business? Are they financially sound? To answer these questions, you can ask the company to provide information (their latest annual report, for example), or you could check with a credit bureau or business credit service like Dun & Bradstreet.
• About Customer Service
  How does this vendor treat customers? How good is their service? How do they handle complaints? You can check customer service in two ways:
  
  • Better Business Bureau (BBB). The BBB is a non-profit organization which allows you to check out a business, look for a BBB-accredited business, or file a complaint against a business. Before you hire a service vendor, check to see what complaints have been filed against them.
    
  • Customer Referrals. Ask the company for several referrals. Better yet, ask if you can choose your own referral or ask if they will give you the name of a dissatisfied customer. Then be sure to call these customers. Ask about the service and how satisfied they were. The more customers you can call, the better you will be able to evaluate their service.
• About Handling Problems
  Find out how the company handles customer problems and issues. Who is available and when? Do they have a 24-hour hot-line? What if you have an emergency? Ask these questions of the company and also ask their current customers.

Many companies hire a vendor before doing their due diligence about the company; you can avoid problems and issues later by checking out the company before you sign a contract.