Can You Do It? Negotiating the Best Deals with Suppliers

business man writing supply chain management concept by flow from supplier to customer

When did you last negotiate with suppliers? It’s undoubtedly among the most effective ways to reduce business expenses, but unfortunately, not everyone knows how to negotiate. The first thing you need to know is that virtually everything is negotiable. Here are more tips and tricks to help you get what you want when negotiating with suppliers:

Speak with Different Suppliers

This is to urge competitive pricing. You need to speak with three or even more suppliers and get their quotes. Of course, make it known that you’ll probably give your business to the supplier with the most competitive bids, but that you’ll also base your decision on product quality.

Make it Known that You’re Offering Them Big Business

Make certain you communicate to potential suppliers that you’ll provide repeat, long-term business. If you’ve started operating, give them a solid sales projection plan and if you’re already got a track record of previous purchases, tell them.

Don’t Get Caught Up on the Price

If a supplier doesn’t want to negotiate on prices, and other logistics consulting providers recommend negotiating for other things that could still reduce your expenses. For instance, negotiate for discounts on bulk purchases, the price of down payment, extra concessions on warranty, faster shipping without extra costs, or extra discounts for paying off invoices early.

Remember the Basic Rule of Negotiating: Never Agree to the First Offer

You could instead suggest a counter-offer or request for a fairer price and justify your request with the business you’re bringing them, how you’re looking for a long-term supplier, or since the quoted price includes features you don’t need but will still be paying for.

Be a Great Buyer

It won’t matter if you’re a supplier’s biggest client because if they deem you as a problem customer, the supplier might not be keen on giving you the best deals to make up for your not-so-stellar business ethic. Always pay on time, ensure that communication is open, and be sure that your relationship is more of a mutually beneficial partnership.

Negotiating with your suppliers does not really have to be a challenge, but you need to have a game plan before approaching them. This way, you increase your chances of gaining the upper hand and getting exactly what you want without lowballing your suppliers.