Submitted by Matiz on
in
Forums
I have been negotiating a deal with a supplier for my company. Boss said she was happy with the deal at a high level and asked me to speak with the supplier to ensure that they do not increase the prices as our requirements were bespoke. I managed to negotiate a 5% reduction in price while we got the bespoke product. Now the Boss wants me to re-negotiate with the supplier to less than half the price which has been agreed to:-(. Needless to say, I do not know what arguments do I put in front of the supplier to be able to negotiate further like this. My boss is quite difficult to work with. She is not a detailed person. I do not want to go back to her and ask her how do I negotiate to less than half the price like this. Appreciate inputs here.
What can you offer ?
Yes, I see it is a difficult situation.
I'm sorry to see folks in a situation like this.
I would say that for your own integrity you can and should tell your supplier that you have been asked to renegotiate the price again. -- Don't make a big deal about it, or make a too much of an explanation. Just, say it simply, "I have been asked to negotiate with you a bit more."
Now - as in any negotiation what do you have to offer other than whining and complaining that the price is too high?
What will your boss let you negotiate with?
In my job, the only thing I have to offer is money, easy relationship and time.
SO the question is:
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Can you offer simpler billing and invoicing?
Can you offer early payment? Large pre-payment?
Cash instead of credit payment?
Anything that makes their time and cost for payment easier?
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What about time?
Can you offer a 2, 3, 4 or 5 year commitment?
Vendors often reduce the price if they have an assurance of future business.
--- We make deals all the time that say ---
We will keep a 3 year commitment with an annual increase of 3% each year.
It creates predicable cost / earnings for the next three years for both of you and creates a long ter relationship.
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Will your boss allow you to make deals like this?
Good Luck
TPuccio
I Absolutely support the
I Absolutely support the opinion of the previous person, about what it is necessary to tell the supplier that this is not your personal initiative, but the boss. And with the boss, as you know, you can not argue.