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Best negotiating tactic

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  • Best negotiating tactic

    I think one of my weak points is negotiating. I wish I could be a better negotiator.
    I don't want to use any tactics where it damages the relationship I have with the suppliers.
    However, I want to use tactics that always get me the best price.
    What are some of the best negotiating tactics you use with suppliers?

  • #2
    Re: Best negotiating tactic

    In our line, there is no negotiating tactics to speak of as the buyer since what we submit for bidding are pre-approved items that were ordered by our clients (which are the users in the other departments). For the vendors or suppliers, I had seen different tactics from them. The most common is the dropping by to make a follow up that they were in the nearby building and they just wanted to see me. Another is the bringing of small tokens like sandwiches or giveaway pens. Those are small things that counts a lot when one thinks of suppliers.

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    • #3
      Re: Best negotiating tactic

      Focus on using methods of persuasion and simply using good logic to help support your negotiations.

      As someone else mentioned, its not always about the dollar. Sometimes business leverage is more important than making a few more dollars.

      In terms of actually negotiating, make sure you seem as honest as possible and forthcomimg about all of your finances.

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      • #4
        Re: Best negotiating tactic

        In my opinion, one of the best tools for negotiating is having a firm knowledge of what you have and what you hope to achieve so you can be more confident in listing down your terms and moving them around when needed. If you know your terms are fair and you have an objective and realistic view of the value of everything and everyone involved then you will be able to much better understand which terms are worth giving up on and which terms are worth pushing.

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        • #5
          Re: Best negotiating tactic

          Thanks everyone for the sound advice. From what some of you stated, it looks like having all of my needed information is very important. I also like the idea of waiting for the supplier to state the price first. However, most of the time, the supplier will ask me if I have a target price or the lowest offer I've received so far. Is it okay to tell one supplier the price quoted by another supplier? Is it okay to state the other supplier's name?

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          • #6
            Re: Best negotiating tactic

            Originally posted by korusa View Post
            Thanks everyone for the sound advice. From what some of you stated, it looks like having all of my needed information is very important. I also like the idea of waiting for the supplier to state the price first. However, most of the time, the supplier will ask me if I have a target price or the lowest offer I've received so far. Is it okay to tell one supplier the price quoted by another supplier? Is it okay to state the other supplier's name?
            I think it's okay to give your estimate first if you are informed regarding your own limits and how it relates to the general cost. That way, all of the guesswork is taken out and if you are pushed to give your last price you would have good reason enough to back it up and you could explain why you think it would be beneficial to both sides for you to receive such an advantage. As for stating the competitor's offer, in my opinion, the most important thing you have to watch out for when doing this is how you express it. Approach it as objectively as you can and try to ask it in question form rather than just stating it for use as direct leverage. If it were me, I'd ask why he or she thinks the competitor is able to offer it in a lower price, such as possibly lesser quality or maybe even shady practices, and that way you are merely asking to make a better informed decision rather than just posing a threat that your business might go elsewhere if they don't play ball.

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            • #7
              Re: Best negotiating tactic

              Hi Korusa,

              I would highly recommend reading this article: https://blog.procurify.com/2014/01/29/906-eprocurement/. It talks about different types of negotiation styles that you can take when finding the right pricing for you and your organization. Let me know what you think!

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