Are You Properly Negotiating with Your Suppliers?
No matter the type of business you operate, there’s a good chance you will be dealing with suppliers along the way.
Whether they supply you with items you sell or packaging to sell it, suppliers are a key part of your life. As such, you want to be sure the suppliers you work with are giving you the right supplies at the right prices.
So, are you doing the proper negotiating with your suppliers?
Know the Ins and Outs of Negotiations
So that you can best negotiate on supplies and more, remember these pointers:
1. Lines of communication – Always make sure the lines of communication are open. The last thing you want is to have a miscommunication lead to a misunderstanding. In some cases, supplies may not get to you. If that occurs, your customers won’t be too happy with the results. If there is a question between you and a supplier, get it answered sooner than later.
2. Are you getting taken for a ride? – It is good for you to research. This will help you know what it actually costs the supplier to not only produce an item for you, but deliver it. If you have no idea how much they are spending in the process, how would you know what you should be paying them?
3. Will they bring down the price in return for trade? – Some suppliers may be willing to lower prices if you do something for them in return. As an example, what if you use word-of-mouth or other means to bring them more business? In return, they may lower prices for you either on the actual product they supply you with or the delivery. It never hurts to see if you can work a deal.
4. Tipping your hand – If you are running short on one or more items, don’t always tip your hand. In some cases, a supplier may want to charge you more, figuring they have you right where they want you. As an example, do you sell seals for items the public uses? Such seals are for usage in vehicles, household appliances, and more. Your supplier knows you likely have a regular stream of business. If you’re running short on certain things, do your best to order more the next time forward. You may even end up with a discount for ordering in bulk.
5. Shop around – It should be commonsense for you to shop around and find the best supplies at the best prices. That said some businesses do not want to take the time to do this. As a result, they can end up paying much more supplies than they need to. It is in your best interest to shop around and get quotes from several suppliers. This is also good in the event you go with one and then down the road are not happy with them. By having reached out to others, you now can turn to one of them for help.
By doing proper negotiations with your suppliers, you and they are likely going to come out ahead over time.