Write down your negotiating strengths and how you might use them to get the concessions you require. Consider ways of defending the weaker parts of your argument and negating the supplier's main strengths. Once you've set out your strategy, it is also essential to get your negotiating team right. Make sure it has skills in all the necessary areas. You'll need to ensure you match the seniority of the supplier's representatives.
For example, you shouldn't send a junior account manager to bargain with their managing director. Make sure each member of the team is familiar with your negotiating strategy. The more confident they sound about what they want, the more likely they are to get it. Before you start negotiating, state the aspects of the deal you're happy with and the points you want to discuss.
Ask the supplier to do the same. Make sure both sides are satisfied with what is being negotiated. Get the supplier to restate any discounts offered and payment terms.
Keep these key bits of information to hand. Do not indicate that there are things you're prepared to concede or compromise on too early in the negotiations. Try to give the impression you're approaching the negotiations positively without revealing your position.
For important or large purchases suggest setting out the key points of the deal in writing. For example, for the purchase of company cars, these might state your requirements, such as the make, year, model, the interior specification and delivery times. You also need to be aware of common negotiating tactics. If the other party keeps referring to urgent deadlines or a person they need to confer with, remember they may be using pressure tactics.
Use such tactics yourself with caution. Don't allow pressure to force you into agreeing to a point you're not happy with. Ask for a break if you need one. Each time you agree to a point, clarify that you've understood it correctly and write it down.
In some trades, suppliers set artificially high prices that are then permanently discounted. If this scenario applies to your business then ensure that any concessions the supplier gives are real -negotiate discounts that go beyond the standard level.
Never accept the first offer - make a low counter-offer in return. The other party is likely to come back with a revised figure. Always ask what else they can include at the given price. If the price is suspiciously low, ask yourself why. Are the goods of sufficiently high quality? Do they really offer value for money? Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.
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Negotiation Tips 2: The Subtle Art of Walking Away In this scenario, your boss wants you to finish a certain procurement as early as possible and at a best bargain. Negotiation Tips 4: Right to Persist on Price Reduction Now you might think what if a supplier is clever enough to quote a price implicit of the sliding range.
Negotiation Tips 6: Influence Compromise with Evidence of Alternatives Compromise in a business deal is as old as trade itself. Related Posts By Category. Procurement gifting guide — A unique guide for procurement profe Revolutionize Accounts Payable with Artificial Intelligence.
Collaborative procurement is a method by which companies can engage with each other to enhance the effectiveness and add value within the supply chain.
The largest global institue for procurement. CIPS membership grants access to resources, networking, support and discounts. The key to good relationships is emotional intelligence and soft skills, which we are becoming increasingly important to our profession. SRM is the relationship formed between a buyer and supplier, subject to the criticality of the goods or services being purchased and supplied.
For Individuals What is Procurement? Podcast: Hear from Sebastian Moritz on how applying game theory methodologies can help procurement with internal and external negotiations Listen to the Podcast. Podcast: Eirini Etimou on negotiation skills for success Listen to the Podcast.
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