5 Ideas to Strengthen Trust in your Commercial Partnerships

I remember arriving for my Master's at the Division of Contemporary Economics at Kyoto University, with a BBA in International Business and Marketing,  and hearing my advisor, Dr. Nariu, say that every situation in the market, including selecting an adequate branding strategy, could and should be expressed in a mathematical model. I got nervous...Ha! 

During those years at Kyoto University I heard many economists speak of market inefficiencies, those aspects of the market that add costs and make the market model of supply and demand- imperfect. 

In everyday terms, these inefficiencies drain much-valued resources such as time and money. One such inefficiency is lack of trust. 

Kenneth Arrow (1972) Nobel-prize winning economist, states that  “virtually every commercial transaction has within itself an element of trust… it can be plausibly argued that much of the economic backwardness in the world can be explained by the lack of mutual confidence”.

How could we define trust in the context of business relationships?  Merriam-Webster defines trust as a noun and as a transitive verb. 

Noun- " assured reliance on the character, ability, strength, or truth of someone or something" "dependance on something future"

Verb- "to rely on the truthfulness or accuracy of "

So the need for trust in business is evident: quality standards, payment terms, delivery schedules, etc. 

Invitro meeting with the Musée des Beaux Arts de Montreal

Here are 5 ideas to consider, as both buyers and suppliers work towards strengthening trust in commercial partnerships.  A majority of these are related to some form of communication, and we can definitely conclude that we can build more trust through better communication. 

1. Communicate Swiftly and Clearly

Buyers: Please send clear specification and descriptions, if you have target prices and delivery dates communicate these, double check to verify if your message has been clearly understood, especially if you are communicating across different languages and cultures, and only through email. 

Suppliers: Communicate clearly the description of your product and/or service, your capability to adapt a product offer and know your costs and the value of your product or service.  Confirm all information with your buyer or potential client to make sure you are both on the same page. 

Both should have the courtesy to answer emails, phone calls and messages as soon as possible within the time frame of your business hours. 

Honduran Service company meets potential buyers from Asia 

2. Strive for Face to Face 

With global business thriving via the internet and business platforms like Amazon and Alibaba, it is a fact that many companies have engaged in trade without ever meeting face to face. Yet, the level of trust you will experience as a buyer, if you visit your supplier and get to see his operation and vice versa, a supplier that visits his client's operation, is beyond par.  Receiving your commercial partner for a business mission is the equivalent, on a personal level,  to opening the doors of your house. Not only will you be able to see and make your personal assessment of the operations, you will be able to exchange information in situ., and of course, get to know each other, better. There are countless stories of how businesses grew - or perhaps were terminated which meant saving time and money- as a result of face to face meetings, ideally at the location of operations of your business partner ( supplier or client) . This is a true worthwhile investment. Start planning a face to face as soon as possible. 

Nicaraguan Cacao Producer visits Belvas - a chocolate maker in Belgium. 

Trade Shows provide  excellent opportunities for
face to face communication.

 

3. Do Not Postpone Bad News Messages 

From my experience and cultural background, I know this is difficult in Latin America. We rather communicate good news than bad, and there is a tendency to mistakenly think that if we do not address the problem or issue, it might go away. In the context of business, as a supplier, it is crucial that you communicate to your client if there is a problem or a situation that might affect the terms of the business you agreed on. Examples are natural disasters or plagues affecting agricultural products, logistical situations,  or a prototype of a product that did not turn out as expected. These issues represent money and profits for you and your commercial counterpart, so it is important to communicate these issues and to jointly work on possible solutions. Trust is built through transparent communication of the good news and the bad. 

Buyers, if you are not interested in an offer or are not able to buy, please also communicate this promptly. 

4. Identify Shared Interests Beyond the Business that Brings you Together

Business partnerships are just another example of human relations and connections. By identifying common interest, you in fact find new ways to strengthen the connection. It is great to do business with a partner with whom we have in common core values and other activities such as social projects, sports, music,  food, travel, etc.  

Don Andres, COAGRICSAL member, meets a potential client in Rimini. 

5.  Know and support each other's business projects and endeavors

Be interested in and take the time to learn about your commercial partner's business and projects. Support them by connecting them to other people and companies you may know that may become clients or suppliers. Referring your partner's business is a very clear message of trust. 

Andytown Roasters promotes Catracha Colectivo, a sister project of
Catracha Coffee Company, one of their suppliers of specialty coffee beans.
Photo credits: Mayra Orellana-Powell

Connecting, building and maintaining trust will lead to long-lasting, meaningful commercial partnerships. If you have any thoughts or stories related to your own experience building trust in business, please share them here! 

Honduras fresh produce exporters visiting importer in Vancouver