Get What You Want Out of Vendor Negotiations

Have you been getting the most of your negotiations with vendors, or do you feel like they’ve always got the upper hand? Here are some tips to help you get what you need and still make some money.

Be prepared

Shop around. See if you can find out what deals they’ve given others in your industry. Learn about the vendor and what motivates them for each sale. Sure, everyone wants to make money, but maybe your vendor is more quota-driven. See if you can figure this out prior to sitting down with the vendor. Find out what their acquisition costs are. The amount of money a vendor will spend to entice a new customer is more than what they will spend to keep you as a client, so you can use this in your favor.

Refine your strategy

Don’t negotiate under a deadline. The vendor will know you are desperate and will use that fact to give you the deal that you’ll accept, but not the one that’s best for you. Take your time and be willing to walk away if it’s not going in your favor. Don’t respond right away when they contact you – make them really work for your business.

A word of caution: if you’re negotiating with a vendor you would like to continue using, keep the tone more cordial. It’s fine to be an aggressive negotiator, but it’s also important to know when to use some restraint and when to be a bulldog.

For more information, see the full article from Industrial Marketer.