From your office supplies to your raw materials, the price you pay for the goods and services you use impacts the net profit of your business. All business-to-business suppliers have some leeway to give you a deal, but you must negotiate with your suppliers if you want to get the best terms. Here are ten tips that will help you get the best deals from all your suppliers.

1. Research the Market

Do your research on the company that you intend to purchase goods or services from before you sit down to negotiate with the salesperson. Understand what the supplier’s competition offers and learn more about what is involved in supplying the product that you are buying. The more you know about the vendor’s business, the easier it will be to gauge how low on price the supplier will be willing to go.

2. Always Approach Several Suppliers

Always have a shortlist of potential suppliers for every product you buy. Having other options will strengthen your negotiating position, and it will give you more confidence in the negotiation. Make it clear to the salesperson that you will buy from the supplier that offers you the best terms.

3. Sell Your Business to Suppliers

Sell the benefits of dealing with your business to the supplier. Highlight the repeat business that the vendor is likely to get from your company. Demonstrate how your purchases will increase over time. If your business is profitable and expanding, sell that fact to the salesperson. Suppliers value stable and reliable customers that pay on time as much as you do.

4. Never Accept the First Offer

The first price that a vendor offers will never be the best price that they could offer. So, treat the initial offer as your starting point for negotiation. A salesperson will have a band of lower prices to fall back on to ensure that they can win the deal.

5. Don’t Allow the Salesperson to Rush Your Decision

Take your time with the negotiating, and do not let the salesperson pressurize you into a deal. The salespersons will try to take control of the process, but you must try to keep the upper hand. If you do feel that you are getting pushed into a quick decision, tell the salesperson that you will need some time to consider their offer. The sales representative will be aiming to close the deal there and then, so stating that you need more time will often result in a better offer.

6. Always Be Prepared to Walk Away

The best negotiators always negotiate from a position of strength. When you are dealing with suppliers, it is the fact that you can say no to an offer that gives you power. However, the salesperson must realize that you are willing to exercise your option to say no. Don’t ever give a supplier the feeling that you have no choice but to buy from

them.

7. Price is Not the Only Negotiable Point

Remember that payment terms, up-front payments, and things such as shipping costs are negotiable as well as the base price of the product. If a supplier refuses to move on the price of a product, you can always try to negotiate better terms and conditions of sale.

8. Don’t Make the Negotiation Confrontational

You do not have to be nasty to be a tough negotiator. Remember that a supplier can walk away from a deal if you push them too hard. Negotiation is the art of finding a compromise that is acceptable to both parties. If you bully a supplier into agreeing to a deal, you may find that you get a lower level of service than you would have got if you had come to an amicable agreement.

Conclusion

The crucial thing to take away from the above points is that everything is negotiable. Whether you get a better price or extended payment terms, every good deal you make with vendors will add to your business profit

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