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Posted By : Admin Thursday, December 27, 2018 08:04:00 PM

The innovation revolutionizes the way companies find the supplier.  Most of them have a connection on auction application and e-sourcing platform.  However, there are still companies who are willing to do the traditional way when it comes to negotiating contracts.  It is their way in establishing relationship with their partner.  It is also a great approach to ensure that you will be receiving the best deal in the market.  Here are some of the tips that will prove you that the art of negotiation is still in the hands of the buyers. Here are some essential Tips When Negotiating Contracts with the Supplier


Give them the Idea that you will need a lot of products

Every supplier has same disposition as any business owner.  They exist hoping that they will be able to sell more products for profit, and they will definitely prioritize any company that will aid them in reaching their monthly goal.  When you are negotiating terms with the supplier, make sure that you will give them that notion that you will acquire a lot of product from them.  It is better if you have a record of your past transaction with the other supplier.  In case that it is your first chance of dealing with a supplier, make sure that you will provide your supplier with a projection which is dependent on the research and logic.


Remember that Negotiating Contracts is more than Just the Price

In case the supplier refused to give the price that you require, remember that you can still take advantage of the other factors that will help you minimize your expenses.  For instance, the amount of down payment can be significantly reduced.  You can also ask for a discount for buying in bulk, or for free shipping fee or for the length of warranty.


Talk to Numerous Supplier

You should create a short list of possible suppliers when finding the supplier that will provide you solution.  It will also guarantee you that you are getting the best value in the market.  Make sure that you will reiterate the fact that you will choose the vendor that will provide the most competitive price.  But still, you need to remember that it is more than just a price.


Large Deposit = Bigger Discount

As we mentioned above, suppliers think like any other business owner, most suppliers are highly concerned about their receivables.  One of the better ways to receive bigger discount is to provide a larger amount of deposit during your order.  In case that the supplier is aware that you will provide a 50-60% of upfront payment, you will gain the upper hand on negotiating terms.

These are just some of the tips in order to gain the upper hand in the art of supplier negotiation.  Remember that everything in the business can be negotiated, and you have to make sure that your negotiating term with the supplier highly favours you.