- Maintaining secrecy around commercial information and any statistics that would allow a cost breakdown to be established
- Added-value bundles
- Implying they have a stronger position and that we need them (even if we don’t)
Supply chain 27 October 2016
Negotiating with suppliers: How to secure the best deal
Approaching the negotiating table with a supplier can be a daunting prospect for the owner of any company. Here, Jonathan O’Brien, CEO of Positive Purchasing, looks at how a small business owner can approach negotiations with confidence and ensure that the finalpriceis a fair one. how do I know how much I should pay for this is a fair question when planning a negotiation and one I frequently hear being asked by small business owners, especially by those just starting out. There is a common misconception that somewhere out there lies a magic tool or approach used by the professionals to gain this insight. Sadly, there is no such thing. In some cases, with a bit of prior effort, research and planning, it is possible to establish with some degree of accuracy what we should expect to pay before we begin negotiating. Unfortunately, perhaps for the majority of negotiations, we go in with very little or no information. There are lots of different reasons for this complexities, history, market dynamics and market difficulty can all cloud our insight. There are three’steps that suppliers can take to be opaque.