- Original Poster
- #1
I sometimes find my self asking our suppliers for a better price on a potential order (these are quite complex orders of specialist parts, so there are limited suppliers, but there is still sufficient completion / alternative suppliers).
I have often already sold the products on my end before i buy them from our suppliers, and I am often flexible on price to secure the order on my end, essentially a portion of my profit can be locked up in the negotiation between my and my suppliers.
The reason im flexible on price my end is the way i see it, is what ever price i can sell at secures the order, so if it make a 20% reduction in my profit, im still guaranteed 80% of my target profit, rather than getting 0% of profit if i dont get the order. I have to be careful with this, as it can become a slippery slope. In addition to price, i make a point of competing on service etc to stay competitive.
When negotiating with our suppliers, I may say "to save money my client wants to use product B (a cheaper and less feature full product from another supplier), i dont want to lose the order for both of us, can you have a look at your pricing". Sometimes this works. Other times it dosnt. (by the way this line isnt a wind up, i only use it when this is the truth as my suppliers would notice pretty soon if i trot out this line every time i place an order)
Any other thoughts on negotiation tactics i could use in the above circumstance ?
I have often already sold the products on my end before i buy them from our suppliers, and I am often flexible on price to secure the order on my end, essentially a portion of my profit can be locked up in the negotiation between my and my suppliers.
The reason im flexible on price my end is the way i see it, is what ever price i can sell at secures the order, so if it make a 20% reduction in my profit, im still guaranteed 80% of my target profit, rather than getting 0% of profit if i dont get the order. I have to be careful with this, as it can become a slippery slope. In addition to price, i make a point of competing on service etc to stay competitive.
When negotiating with our suppliers, I may say "to save money my client wants to use product B (a cheaper and less feature full product from another supplier), i dont want to lose the order for both of us, can you have a look at your pricing". Sometimes this works. Other times it dosnt. (by the way this line isnt a wind up, i only use it when this is the truth as my suppliers would notice pretty soon if i trot out this line every time i place an order)
Any other thoughts on negotiation tactics i could use in the above circumstance ?
