How to politely ask supplier to increase discount?

Discussion in 'General Business Forum' started by mrgazer, Jul 16, 2017.

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  1. mrgazer

    mrgazer UKBF Newcomer

    47 0
    Hello

    I had been trading for number of years, one thing I had not mastered is how to politely and successfully ask a supplier to increase discount?

    I had been using a supply for a specific product for number of years now, it is more of a brand than supplier.

    A lot of you may ask me to change supplier, but for automotive business, a brand is a brand. Can;t really change supplier as such.

    But back to the question, asking for further discount is one of those things, that is embarrassed to ask, don't know where to start, don't know how to ask.

    They are currently offering 35% off rrp which is actually quite a good discount rate. But who doesn't want further discounts hey? And they had actually increased my rate throughout the past few years.

    How would you guys go about requesting further discounts in a professional manner and have more chance of getting them to increase it?

    Look forward to hearing from you.

    Cheers
     
    Posted: Jul 16, 2017 By: mrgazer Member since: Oct 13, 2013
    #1
  2. Mr D

    Mr D Contributor

    28,439 3,518
    Buying wholesale at 35 percent off rrp????

    Is that normal for that type of product?

    Have only asked once by phone send turned down, rep did suggest that a couple of large orders later in the year and could get an extra 5 percent discount after that.
     
    Posted: Jul 16, 2017 By: Mr D Member since: Feb 12, 2017
    #2
  3. fisicx

    fisicx Moderator
    Verified Business ✔️
    Contributor

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    Double the size of your order
     
    Posted: Jul 16, 2017 By: fisicx Member since: Sep 12, 2006
    #3
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  4. The Byre

    The Byre Full Member
    Contributor

    11,317 4,886
    Are we talking cars or are we talking car parts?

    Assuming it's car parts, there is no shortage of OEM suppliers and suppliers overseas who are able to access original parts at lower prices. I believe Italy and Spain are hot right now, or at least they were a year ago.

    Just make it clear to the supplier that he had better lower his prices, if he wants to keep your trade.

    Also, there is no shortage of original used parts from crashed cars.
     
    Posted: Jul 16, 2017 By: The Byre Member since: Aug 13, 2013
    #4
  5. menetworkjadaltd

    menetworkjadaltd Contributor

    606 87
    Give them a reason to lower their price / increase their discount...
     
    Posted: Jul 16, 2017 By: menetworkjadaltd Member since: Dec 14, 2011
    #5
  6. RobertN

    RobertN UKBF Newcomer

    78 7
    You cannot work out proper margin which could improve your business growth. You simply came across new business expansion plan which you're interested in. To achieve results you have to work on better margin and use the extra income to implement your plans. A Higher discount would help you to do that and in a case of success, this would increase your order amounts from a client. You can start working on your approach from something like this.

    It is not an embarrassing question just uncomfortable but if you find the right approach and you have been dealing with a supplier for a number of years it is going to be easy.


    Best luck! :)
     
    Posted: Jul 16, 2017 By: RobertN Member since: Jul 12, 2017
    #6
  7. Noah

    Noah Contributor

    1,254 315
    Set your target price or discount(s), and then directly ask what buying pattern (quantity per order, frequency of order, delivery times & timescales, total periodic value of orders, etc.) you would need to have to reach this.

    If you want to play the game, start with "I know currently you can do better than 35% [because competitor X], but what more would I get if I [changed one of the above]".

    Handle any initial negative response politely but push for specifics, so you know if there is any opportunity, or your supplier will geniunely go bust if they sell at even a penny less.
     
    Posted: Jul 17, 2017 By: Noah Member since: Sep 1, 2009
    #7
  8. mcmm

    mcmm UKBF Newcomer

    39 5
    Don't feel embarrassed about asking for discount, I would replace that embarrassment with a visualisation of you being able to expand your business, pay your employees, get that extra something for your family you will soon find it easier to do.

    Being tied down by a Brand is a more difficult problem especially if there are no other sellers of this Brand (I assume you are trading directly with the Brand and not resellers).

    There has to be other like competitive and cheaper Brands that you could easily convert your customers.

    The Brand rep wants to make as much sales as possible at the highest price possible and also keep you as a customer.

    You need to do market research as to different suppliers, once you have this information you are more prepared to ask for more discount.

    Do you meet the Rep or is it over the telephone? You should ideally meet the Rep and discuss your plans for your business growth and how this Brand would be an integral partner in that growth and how important it is to have more discount which will accommodate growth but ultimately more sales for the Rep, you could also highlight other potential brands.

    If you are not looking to expand and just want a discount then a simple meeting highlighting the demands on your business and how a discount would assist your business and your ongoing relationship with them.

    Remember you are the customer here.

    And lastly you could be blunt, ask the Rep the thresholds of ordering quantity at which additional discount is applied.

    Kind Regards
     
    Posted: Jul 17, 2017 By: mcmm Member since: Feb 27, 2017
    #8
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