You can frequently get a better deal than what you’re presented with. Follow these negotiation tips for vendors to improve the pricing you’re getting. In business, it doesn’t pay to be passive. That goes for selling, marketing, seeking financing, and when dealing with suppliers.
No matter the case, you can almost always get better rates. All it takes is some negotiation skills. You also have to understand their psychology and what goes into evaluating prices. Let’s take a look at a few negotiation tips for vendors.
1. Leave it to the Experts
There are some cases when it would be better for you to let professionals do the work for you, e.g., debt restructuring, or when trying to reduce your utility bills. Businesses that use a lot of water would be wise to work with a service like utilitybidder.co.uk.
Not only can they help you compare between the best suppliers in the country, but they will even negotiate on your behalf. Services like these often have a privileged relationship with suppliers, which allows them to get better rates than you could ever get on your own.
2. Offer to Buy More
Bulk purchases is one of the key negotiation tips for vendors. If you’re buying supplies or materials, you have to understand that suppliers or vendors will usually have different prices depending on the quantity you buy. So, if you can, you should consider beefing up your orders.
This can be done with non-perishables you know you’ll be using, but another thing you could do is look for buying partners. They can be in your industry or not. If you need warehouse supplies, for instance, you could form partnerships with other warehouses in your area and agree to pool orders together so you can consolidate your purchasing power.
3. Don’t Focus on Price Only
When picking suppliers, don’t stop at price only. Have a list of suppliers and rank them based on multiple criteria with one being the main determining factor. For instance, some may be able to supply products faster or in larger quantities, while others may be able to offer better quality. These are two things that could end up paying on the back end.
So, if you have suppliers that meet those criteria, do not press them too much on price and focus on building a solid relationship with them so you have a chance at getting a better price later on.
4. Price Negotiation Tips for Vendors
There are also some price negotiation phrases and principles that you’ll need to understand before you try to lower prices. For instance, you should never make the first offer. This will show them exactly what you’re ready to pay and this might be way higher than what they expected.
Instead, let them make the first offer and then make a low counter offer. It should be significantly lower than what you were willing to pay without being insulating or out of tune with the market.
You might also like our video on negotiation tips to overcoming price resistance:
Another thing you should do is try to get as much as you can as part of the deal and see if there are any extras that they can throw in. Also, be wary of any uncharacteristically low prices, as they may be used to hide something, such as poor quality or their true supplying capacity.
These are all important negotiation tips for vendors that you’ll need to remember if you’re trying to get the best deal out of your suppliers. They will help you keep prices to a minimum and get the best service possible.