Tips for negotiating with your suppliers

A basic skill that every procurement professional needs is negotiation. It is important to remember…...

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A basic skill that every procurement professional needs is negotiation. It is important to remember that the right deal to fit your scheme of things exists if you can get your negotiations right. Whether negotiating pricing with your suppliers or sealing a deal with new business clients, everything is negotiable. 

If you are dealing with your suppliers and looking to get the best deal, here are some handy tips:

Create your business as a prospective long-term deal

When dealing with suppliers, remember that any supplier will aim to get a long-term deal. If your business is a great prospect for them in the long run, it will be easier for you to negotiate a good price. One way to promote your business as a good long-term client would be to provide your suppliers with a sales projection plan so that they are aware of the quantities you would need over a longer period of time.

Always discuss with various suppliers

If you are looking for a competitive price, deal with several suppliers. When you compare quotes from different suppliers, you will have a better understanding of market prices, which will aid your negotiations. Don’t accept the first offer, research and look around; the best deal might be out there, waiting for you. Another good approach would be to deal with one supplier once you have shortlisted them. It will give them bigger deals, and you will get better prices.

Ease the flow of payments

Suppliers are often anxious about payment cycles and will not want a lot of money to get stuck in accounts receivable. Providing regular payments and larger amounts can help you negotiate a better deal.

Negotiating with your suppliers isn’t always about bargaining. It is about striking the best deal to give you great quality materials and affordable prices. Use these tips for negotiating with your suppliers and get the best deal without compromising quality.

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