Vendors & Negotiation
As a sourcing or procurement professional, it is vital for you to have the right and most effective negotiating skills. At the end of the day, it all comes down to achieving the expected ROI for the particular sum of investment made. It can either be an increase in the value of money invested or the same value of money for a lesser amount of investment.
Sourcing and negotiations go hand-in-glove. From the buyer’s perspective, they wish to negotiate and get the goods or services at a reasonably lesser price. From the seller’s perspective, they want to stay above a specific limit in monetary terms, along with trying to upsell their product or service. Here are some hacks and techniques that you could use in your negotiations to come on top while maintaining a healthy relationship with your counterpart:
Building rapport or a relationship is vital if you wish to establish a long-lasting relationship. Take your time to understand their needs and the way they operate. In fact, following the objectives of your client allows you to plan negotiations in the most effective way possible. It is known to be simple yet, a highly-sought-after workaround to aggressive demanding for a lower/higher price. After all, good rapport may allow your client to give small discounts in your favor.
Communication is key to negotiationEffective and clear communication between both parties is one of the most critical aspects of successful negotiation. Maintain a positive and steady tone throughout the talks. This shows that you are confident and trustworthy. Focus mostly on the positive aspects. Also, keep the conversation active by asking your client a few questions related to the deal and get their opinion on the same. Let your client know that you are actively listening to them using verbal nods and paraphrasing. This keeps them from taking you for granted or assuming you are disinterested.
Negotiating is not a battleMany people enter the meeting room for a negotiation considering it to be a battle and that they should win at any cost. They are usually determined to achieve their target with all their demands being met. Such an approach often doesn’t bear fruit as your counterpart may feel offended. On the contrary, taking a soft approach can cost you dearly. You may have to settle for way lesser than you anticipated. It is always advisable to be on neutral ground, where you are neither too harsh nor soft. You will have to give in slightly while keeping your objectives in mind.
Be honestTrying to trick or manipulate the client can have devastating effects if they happen to find out. It may result in the deal being canceled, or even legal issues that can be career-threatening. Agreements made in good faith usually last for a long time and help you maintain a healthy relationship with the client. Say it upfront as to how much you are willing to budge, and what would be your best number. This gives the client a good idea about how far you are willing to go.
Call us at (425) 737-9015, and we'll be happy to help you.