Five Steps to Better Supplier Deals

 

Be Reasonable

The relationships that you have with your vendors are important.  They are the people who supply your business with the products and services that you need.  That’s why when you’re negotiating for a better deal, it’s important to keep that relationship at the forefront of your mind.  It’s not bad manners to ask for a better deal, but it can be quite insulting if someone asks for too good of a deal.  Know what the respectful limits are before talking to your suppliers and don’t cross the line.

Be Persistent

If you accept the first number they offer, you will have marked yourself as a poor negotiator, and that may come back to harm you in the future.  Instead, consider carefully the deal on the table, and then counter it.  You want them to know that you are serious about getting the best price that they can offer.

Be Boastful

If you’re going to ask for a discount, you should give the supplier a reason to give you one.  Are you a repeat customer?  Have your purchases increased lately?  Do you always pay your bills on time?  State your case, and remember that the supplier will do everything they can to keep a good customer.

Be Optimistic

You know that your company is going to continue to grow and in the future will need to buy more and more from your suppliers, but do they know that?  It’s important that, even if you’re a small business now, your suppliers know that you won’t be that way forever.  It’s okay to act bigger than you are when negotiating.

Be Prepared

Finally, it’s important that you know exactly what you’ll ask for when starting the conversation—and what you’ll settle for.  Let your suppliers know, in a gentle way, that there are other suppliers out there, and you’ll do what you need to in order to get the best price for your business.  Talk specifics with them.  Will paying a portion of your invoice up front get you a better deal?  What about a different terms agreement?  Know in advance what their competitors offer and how they stack up.

Asking for a better deal from your suppliers just makes sense in this economy.  Don’t be afraid to present your case, and if necessary, talk to other suppliers to get the best deal you can for your company.  After all, it just means more profits in your pocket.

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