Is it Time To Renegotiate With Your Vendors?

Whether you purchase raw materials, a delivery service, or even wholesale products, you have the business responsibility to get the best value from your vendors, while saving the most money for your bottom line.

Of course, this does not mean you should short-change your vendors. However, if you have a long relationship with a supplier, or even if you make large and frequent purchases from a single vendor or two, you should re-evaluate your business arrangement. However, how do you renegotiate terms and keep the relationship healthy? It’s not easy asking for discounts or more services for free.

Here are a few tips to keep in mind when renegotiating with your important vendors:

Be Honest

Be up front with your vendors and business partners about the reason you want to negotiate. If you simply tell them you want a better deal without a reason, you are likely to start out your negotiations on a bad foot.

Instead, explain the reason, be it that you have slashed your budget in order to stay afloat, or you have lost a big contract from another client, or even that you feel the vendor is not living up to its part of the deal.

Set Your Goals

Let your vendor know what you want or need to accomplish. Your goal may be to simply keep your budget in the black in order to stay in business. Or you may want to try assembling a product in a different manner. Letting the vendor know what you need may help them help you.

Be Creative in Your Negotiations

Being creative in the “give and take” process of negotiating will likely deliver better results. For example, you may not need two weekly deliveries, and by consolidating the delivery into one weekly visit, perhaps the vendor could provide you a discount. Perhaps by ordering another product with the vendor, you could enjoy better discounts across the board. If you can find ways to be creative in your negotiation, you will find that your vendors will be more likely to bend in your favor as well.

Use these brief tips as a guideline for getting the most from your suppliers or vendors. Remember, you want to work out a deal that is most beneficial to both you and your vendors.

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