Procurement negotiation is an important business activity which saves money that goes straight to the bottom line of a company. The impact is huge and immediate.
Tips for negotiating with suppliers and vendors.
- Know your supplier organisation well
- Know the suppler negotiating team
- Set agenda in advance
- Prepare negotiation strategy worksheet
- Set up your negotiating team
- Align pre-arranged signals for internal communications
- Don’t accept the first offer
- Beware of low prices
- Remove features you don’t need to further reduce the price
- Try to cultivate long term relationship
- Be firm and fair