When it comes to negotiating with suppliers, business owners often believe that the more they try to convince their supplier to come down on price, the more successful they will be. However, the best negotiators will tell you that this isn’t true.
The two things to remember when negotiating are:
- Don’t talk too much
- Know what to ask
Let your supplier do the talking
Let your supplier do the talking. The quieter you are, the more nervous they become. When they give you a long spiel about the ‘best deal’ they can offer you, let a few moments go by without answering. This gives them the impression you are thinking about the deal, even if you have already decided what your answer will be. The longer you are quiet, the more they think you will say no. So they may continue talking and offer you a better deal.
Using The “Why NOT”
If this method doesn’t work, then you need to know the correct questions to ask. The best and most powerful question when negotiating is very simple. Ask, “Why not?” For instance, let’s say you have requested a special price from the supplier because you are ordering 450 printed promotional items. They deny your request. You ask, “Why not?” They reply that special pricing only applies for orders of 500 items or more. Now you can simply order 500 printed items and get the price you want.
No matter what the answer is when you ask, “Why not?” you will be able to take that information and form your rebuttal. When young sales people aren’t sure about something, they will often say ‘no’ without consulting a senior member of staff. When questioned more closely, they will admit they don’t know the answer and may find someone who can truly help you negotiate the best price.
Using The “What would you do”
Another very powerful question is, “What would you do?” Describe your situation to the supplier and ask them what they would do if they were in your shoes. They won’t want to send you to their competitors, so they may come up with a creative way that both of you can get what you want out of the deal.
One important point to make is that you can’t be shy when it comes to negotiating. Know what you want and use these tips to get it. Good luck!
What are your thoughts about “Your Keys to More Effective Negotiations?” Read our 5 Tips to negotiate a better deal with suppliers which is a little more indepth.
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