Stepping into the dragon’s den may be intimidating, but for the suppliers that secure a contract with a dealer group, it can mean a long-term relationship based on mutual trust and commercial benefit.

Some of the dealers interviewed for this feature have supplier relationships that have lasted for more than 10 years, which gives them particular insight into the finer details of negotiating a partnership.

It is fairly easy for dealers to review who the key suppliers in the industry are, from looking in the national trade press, to searching online or looking at who competitors are using day-to-day. The bad news for suppliers starting out or that may not yet have a proven track record, is that dealers don’t like to gamble on a start-up.

Jon Head, Marshall Motor Group commercial director, helps to run 103 businesses across the UK and a supplier coming in to pitch needs to be ready to show what it can deliver.

He said: “We don’t gamble when it comes to suppliers. We need to see a good track record of results.”

Dealers want to see that suppliers can back up what they say with evidence – statistics, quotes from clients, awards and accreditations.

Marshall usually gathers a shortlist of about seven key suppliers to consider, before the board and procurement team whittles down pitches to the best three. Best practice dictates it gets quotes from at least three prospective suppliers.

Suppliers coming in to pitch need to make sure they meet the minimum requirements for the opportunity and these will usually be laid out as a set of key performance indicators  (KPI) from the dealer group.

Harwoods Group’s policy is to get three quotes for any deal and then review pitches based on customer service, cost, how they conduct themselves as a business, their processes and how the contractor trains its staff and works with subcontractors.

Archie Harwood, Harwoods director, said: “Ultimately you want to go with a business you believe in and trust. Their core values need to line up with your own.”

Generally, “as a rule of thumb”, Harwood won’t agree to an outsourcing deal of more than a year.

He said: “We have quite a close and small management team and the minute something isn’t right with one of our suppliers we can discuss the situation and look at a review.”

Birchwood Group uses GForces for its digital marketing.  Pete Parker, Birchwood’s operations managing director,  said  it is a long-term relationship that is “ever-evolving”. However, he said, as with any supplier, it makes sense to review

performance and invite other suppliers to the tender process.

Marshall has a team of procurement managers that go through the initial courting phase with suppliers. The size of the executive team brought in to judge pitches depends on the size of the contract and its impact on the business.

Head said: “Sometimes it is important to get buy-in from brand managers across the business. If you’re making a decision that could affect how they operate, you need to involve them and I wouldn’t put a supplier in front of them that I didn’t think would work.”

Parker said Birchwood outsources FCA compliance, digital marketing, body repair, security, glass repair and health and safety.

When the business is looking for a new supplier, he will receive approaches or will contact potential partners to formally present.

He said: “Depending on how big the part of the business is, will determine whether we get the board of directors involved in that meeting, or just leave that up to the relevant department.

“If you’re looking at a body repair supplier, it makes sense to get the head of service or parts involved in that meeting.

“We try to be as democratic as possible and judge the presentations on service and cost. We’ll get together afterwards and make a selection.”

While Marshall lets suppliers know if there are key areas it wants to see in presentations, Head said there is a lot to be learnt from the way a company presents itself during a pitch.

He said: “I find it’s better not to dictate or be too exacting with what you want to see. The content and style of the presentation can say a lot about a business.

“The winning pitch should never just be about what is the cheapest either. There have been plenty of tender pitches that have been walked away from even though they were the cheapest – we just felt they couldn’t deliver the service level we deserve.”

Head said depending on the scale of the contract, it can be prudent to insist on exit or break clauses. However, Head said he couldn’t remember the last time he cancelled a contract due to poor performance.

He said: “You need a direct line to the key stakeholders of the supplier at the top. If anything does go wrong, it can be discussed quickly with the person in charge and necessary change can be effected quickly.”