The Art of Negotiating with Suppliers

The art of negotiation comes in useful in many different areas and skilful negotiators will be able to get the very best deals with suppliers leading to larger margins and more profits for your company.
Here are a few tips and tricks to remember when negotiating with suppliers.
1 – Always try to research the costs of the product – if you know how much of a mark-up your supplier has then it can help you to know if you are really getting a good deal.  If you know the manufacturing costs it puts you in an even  stronger position for negotiation.
2 – Build a rapport with your suppliers in order to negotiate the best deals – be attentive, listen well, respond to any issues they have and work on communication. The better working relationship you have with your suppliers the better arrangements you will be able to negotiate.
3 – Find areas of mutual gain – if you supplier stands firm and won’t budge on price focus on other areas instead. This could be the payment terms, down payments, length of warranty, discounts for volume purchases etc. If you can come up with something which benefits both parties you’re on to a winner.
4 – Get quotes from Read the rest of this entry