![]() ![]() Keep these key bits of information to hand. ![]() Get the supplier to restate any discounts offered and payment terms. ![]() Make sure both sides are satisfied with what is being negotiated. Conduct negotiationsīefore you start negotiating, state the aspects of the deal you're happy with and the points you want to discuss. The more confident they sound about what they want, the more likely they are to get it. Make sure each member of the team is familiar with your negotiating strategy. For example, you shouldn't send a junior account manager to bargain with their managing director. You'll need to ensure you match the seniority of the supplier's representatives. Make sure it has skills in all the necessary areas. Once you've set out your strategy, it is also essential to get your negotiating team right. Consider ways of defending the weaker parts of your argument and negating the supplier's main strengths. Write down your negotiating strengths and how you might use them to get the concessions you require. SERVERS WHATS YOUR FIRST LINE WHEN WALKING UP TO A TABLEDIT FULLFor example, you may decide that you'll only pay the full price in exchange for fast turnaround. Think about different offers the supplier could make and what you are willing to concede or compromise on. Start by defining what your priorities are, such as low price, high specification goods or a specific delivery schedule. This will help you set clear goals and work out where you will draw the line and walk away from the deal. It's essential to plan your strategy in writing before beginning negotiations. For example, a salesperson may need to meet a monthly sales quota. Negotiating at the right time can be an important strategic tool. There's no point trying to squeeze concessions out of a junior member of staff who doesn't have the authority to grant them. Try to identify the key staff in the supplier's business to negotiate with. There's also the risk they could drop the product you require, or even go out of business. But tread carefully - if you push too far you may erode its goodwill, which could damage the service you get. If you're a small supplier's main customer, your leverage in negotiations may be considerable. Try to find out as much as you can about the state of its order book. Also, the supplier may already be offering good deals in a bid to increase its market share.Īlternatively, a supplier may need your business to get rid of old stock or to fill spare production capacity. However, if the supplier has a number of competitors - or is a new entrant to a particular market - you'll be in a much stronger position. you only have a few other sources to select from.If the supplier runs a near monopoly it is likely to have the upper hand because: Your bargaining power increases in direct proportion to your potential supplier's need for your business. Understand your supplierīy conducting some basic research into a potential supplier you can work out how valuable your business is to them. Don't underestimate the importance of good will. Remember that if you want to do more business with the supplier in the future, you should aim to strike a deal that both parties are happy with.Īlthough getting the best possible deal in the short-term is important, a good relationship in the future may help you get even cheaper prices or other perks, such as priority delivery. You should also consider what offer the supplier is likely to make and how you'll respond. But remain realistic - if you're not prepared to compromise, the negotiations won't get far. The key is to establish your preferred outcome. Or if you're investing in a complicated piece of computer software, you might want to make sure that training is provided as part of the deal. Decide what you are - and aren't - prepared to compromise on.įor example, if you're ordering supplies in bulk you might want to find a supplier that will offer you a discount. whether or not the product or service is essential to your businessīefore you start to negotiate, draw up a list of the factors that are most important to you.after-sales service and maintenance arrangements.Negotiate the right deal with suppliers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |