Negotiation is what makes the business world go 'round, as they say. It is the process of artful bargaining between two individuals or groups with a symbiotic relationship with one another. It is a balancing act in many ways, usually tipped by one of the negotiator's perceived advantage over the other. Businesses who rely on one another can either be bonded or broken through negotiation. So it is crucial that all professionals learn how to properly negotiate with clients or suppliers.
The first thing you want to do is acquaint yourself with your supplier thoroughly. Learn about your supplier's competition, including their prices and special offers. This step is crucial whether or not you have an existing association with this supplier. Ask for discounts as an incentive for becoming a new customer, or for being a reliable customer. You should consistently press your supplier to impress you with offers or discounts.
Once your prospective supplier makes an offer, you should decline. That's right: Never accept the first offer from a supplier no matter the appeal. On top of reduced costs, ask the supplier for any giveaways they may be offering. If you pay your invoice ahead of schedule, will there be a discount in totals? Are there discounts for ordering more of the product or service at one time, or over a period of time?
Lastly, nitpick the fine print of your documented deal, looking past the price.Does the suppler offer warehouse storage for extra stock so it can be sent to you quickly when needed? Is there an extended payment offer in your agreement? Will the supplier discount delivery rates for allowing them to ship when convenient? Warranties on stock or extra incentives are other things you should ask the supplier about, as it may benefit your customers as well.
Absolutely the most substantial component of your relationship with your suppliers is negotiation. You may have to bend at times, but your needs should be key when dealing with suppliers. The act of negotiating is difficult, and must be tended to often. However, it's a process that can be learned and implemented effectively. Slow down long enough to discover all there is to know about your prospective, or existing supplier, their competitors, and what you need, and it will all pay off.
The first thing you want to do is acquaint yourself with your supplier thoroughly. Learn about your supplier's competition, including their prices and special offers. This step is crucial whether or not you have an existing association with this supplier. Ask for discounts as an incentive for becoming a new customer, or for being a reliable customer. You should consistently press your supplier to impress you with offers or discounts.
Once your prospective supplier makes an offer, you should decline. That's right: Never accept the first offer from a supplier no matter the appeal. On top of reduced costs, ask the supplier for any giveaways they may be offering. If you pay your invoice ahead of schedule, will there be a discount in totals? Are there discounts for ordering more of the product or service at one time, or over a period of time?
Lastly, nitpick the fine print of your documented deal, looking past the price.Does the suppler offer warehouse storage for extra stock so it can be sent to you quickly when needed? Is there an extended payment offer in your agreement? Will the supplier discount delivery rates for allowing them to ship when convenient? Warranties on stock or extra incentives are other things you should ask the supplier about, as it may benefit your customers as well.
Absolutely the most substantial component of your relationship with your suppliers is negotiation. You may have to bend at times, but your needs should be key when dealing with suppliers. The act of negotiating is difficult, and must be tended to often. However, it's a process that can be learned and implemented effectively. Slow down long enough to discover all there is to know about your prospective, or existing supplier, their competitors, and what you need, and it will all pay off.
