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A Good Deal: Tips For Negotiating with Your Supplier

A business is nothing without a good supplier. Just imagine a restaurant without the best ingredients and you can understand why having a great supplier is essential. But even if you do have a deal with a top-notch supplier, you still have to iron things out to ensure you are getting your money’s worth.   Here are some tips that should help you out:

Research the Price

If you don’t want to be cheated, you need to know exactly the costs of what you are paying for. For example, when you need parts for diesel engines, check the prices from Detroit Diesel itself. Then look at the price that the suppliers are offering. If the mark-up is too high, then that supplier is likely not the one for you. Knowing the different available prices should reveal which of the available suppliers is going to be fair for you. It is also useful for negotiating since you can compare the prices that each supplier offers.

Create a Win-Win Situation

Ensuring that both you and the supplier get a good deal should be the aim for anyone negotiating with a supplier. Win-win situations can mean that they will agree to your contract and stipulations. The key to this is to think like a supplier. Consider what you would do when you have a product and you want to sell it. What would you consider a good deal? What do you think you can deliver? With your earlier research about the price, you can have an idea about what would be profitable when it comes to the supplies.

Be Efficient About Your Purchases

As part of your dealings with the supplier, you should look at how you normally buy from suppliers. If you are buying piece-meal, then you are doing it wrong. You should arrange with your supplier to consolidate the purchases. Instead of multiple separate purchases, a single order to be delivered in one go is better for several reasons. For one, you can save money on the delivery fees in that way. Besides consolidation, you should examine your current purchasing process to see what you can improve.

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Be Ready to Play Hardball

Being a good negotiator is essential if you want to get a good deal. One of the obstacles that many people face when doing so is that they often hesitate or back down too easily. When negotiating, you should be ready to play hardball. Driving a hard bargain might be against your instincts, but doing so will only benefit your business. One thing to remember is that you can always walk away. Unless the supplier has a monopoly, there are always options available to you.

Check the Contract and Hold Suppliers to It

When you’ve finally got a deal, it is always a good idea to check the contract that you are signing. Besides ensuring that everything is on the contract, it also gives you a better idea of what to expect from your suppliers. You should keep that in mind when they are doing their job. For example, if the contract says that a supplier will give you a warning if they are going to be delayed in deliveries, then they should be doing that.

When they don’t do that, there should be a clause in the contract for a penalty like a discount for you, or they waive some fees. Be strict about enforcing this to ensure that you are getting a good deal.

Aim to Be a Model Customer

A happy supplier is a dependable supplier. They will also be more likely to be helpful or forgiving. To ensure that your supplier will be happy with you, you should be a model customer. This means that if they do deliver good supplies on time, you should be paying them in full on time. Be cordial when you communicate with them and always be open to communicate with them.

You should also avoid causing them problems. For example, if you aren’t there to regularly receive the deliveries or they have a hard time getting in touch with you. Don’t give them any headaches and you should be fine.

A solid partnership with your suppliers ensures that you can provide the best products and services possible. The tips above ensure that your company won’t be paying too much for these essential suppliers. They can also prevent your supplier from cheating you. With a good deal with your supplier, you can assure your customers that you are giving them the best possible product that you can make.

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