7 Tips for Successful Negotiation

It’s important to remember that negotiation isn’t about winning or losing. It’s about finding a middle ground in which both you

and your suppliers are satisfied with your deal.

Following these top tips will strengthen your negotiating position...

1. Research your supplier’s market

Get to know your current supplier’s competitors and shop around for the best deal. Even if it’s more convenient for you to

stay with your existing supplier, you’ll have a stronger negotiating platform if you better understand the shape of the market and

your options.

2. Work out what you want from them

If you’re trying to increase your profit margins, you might want to negotiate a discount. If you’re trying to improve your cash flow,

however, you might prefer more lenient payment terms. Going in with a clear vision of what you want means you’re less likely to

be led astray. That said…

3. Find out what your suppliers want

You may be able to strike a deal that suits you both. Your supplier might want to reduce their own delivery costs, so could offer you a discount if you place larger order less frequently. So don’t treat negotiations as a chance for you to make demands –

work together with your suppliers to get a deal that suits you both.

4. Prove you’re a good customer

If your suppliers are happy with the current arrangement, they might need some convincing that you deserve a better deal.

Here’s where you prove you have a good track record with them. Pay on time, be polite and helpful and these attributes will work

in your favour.

5. Bring recurring business

In addition to being a good customer, know that being a repeat customer will also work in your favour. It’s easier for suppliers to

work with repeat customers, so if you can secure regular business they’ll be more likely to negotiate.

6. Bring something to the table

Whether you intend to offer a larger deposit for smaller overall prices, or secure a discount by bulk buying stock – know what

you’re willing to offer in return (and what you’re not prepared to offer). The key to successful negotiation is really proper

preparation in advance.

7. Don’t accept the first offer

Accepting the first offer is one of the most common mistakes made by negotiators, especially when it’s not the deal you want.

Issue a counter offer or ask them to get back to you with different terms or a better price. Remember, they’ll often need

you as much as you need them. And if you’ve done your competitor research then you’ll know where else to go!

Going into your negotiations informed and willing to compromise or ask for favours will improve your negotiating position. And

conducting your negotiations fairly, with respect for you suppliers and a clear vision of what you want to achieve will help build a

strong and lasting business relationship. Good luck!

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