How to negotiate a purchase
- 1 Decide how much you want the deal; identify how much it is worth to you and what alternatives you have.
- 2 Find out as much as possible about the supplier's position: how much they need your order and what their priorities are.
- 3 Work out what you could offer, if necessary, that the supplier would value - a large order or prompt payment, for example.
- 4 Set your objectives; decide what your targets are for price and other terms, what your priorities are and what would be acceptable.
- 5 If possible, choose the right time for the negotiation: when you will be under no pressure to reach a deal but the supplier will.
- 6 Before the negotiation begins, prepare yourself to be firm but fair, aiming for a deal that will suit you but also keep the supplier happy.
- 7 Restate the specification of what you require and agree with the supplier the key points to be negotiated.
- 8 From the outset, try to get the supplier to state a starting price which you can negotiate downwards.
- 9 Do not reveal your negotiating position; focus on asking questions and sounding positive without giving information away.
- 10 Undermine the supplier's price: focus on weaknesses in what the supplier is offering and ask for trade or bulk discounts.
- 11 Ask for other concessions, such as better payment terms; make sure that any concession you are offered is of genuine value to you.
- 12 Confirm every concession the supplier makes.
- 13 Only make concessions yourself in exchange for something you value.
- 14 Be alert to any tactics the supplier uses, such as trying to create a sense of urgency; be prepared to postpone a decision if you need time to think.
- 15 Follow up with a written agreement.
- find out what the supplier wants
- set clear objectives before negotiating
- ask for discounts and other concessions
- focus on what concessions are worth to you
- get the agreement in writing
- accept the initial offer
- reveal your negotiating position
- make concessions without getting something in return
- let yourself be pressured into agreement