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Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....
Whether or not a supplier is the only option you have for certain products, you should approach negotiations strategically. In a competitive market, every cost makes a difference to your bottom line. By securing the best possible deal with suppliers, you can become more efficient, which makes you a better customer to vendors in the long run.
The following 5 tips can help you to make great deals with vendors.
You’ll find yourself in a much better negotiating position if you already understand suppliers’ products, costs, processes, and markets. Do you know how to use suppliers’ jargon? If not, read their blogs and talk to people in the industry. Get comfortable with their terms, trends, and concerns, and try to understand the biggest issues they’re facing in their organisations. When you know where they’re coming from and what they’re concerned about, you can negotiate much more effectively.
How will working with your company improve aspects of suppliers’ businesses? When you can help suppliers to see your relationship as a partnership, rather than just a seller/buyer transaction, you can position yourself to be beneficiaries of win-win opportunities. For example, if you find in your research that the supplier is worried about long-term risk for their organisation, you might be able to negotiate a lower price in exchange for a long-term contract.
You can encourage suppliers to offer their most competitive prices when you use a bidding process to solicit proposals from many suppliers at the same time. This strategy works well when you have many different suppliers to choose from and low cost is your driving motivation.
High-demand customers are not likely to get the kinds of deals that cooperative customers negotiate. Suppliers’ profit margins can become eroded by customers that require large amounts of attention and customer service. Suppliers get an idea of which kind of customer you’ll turn out to be during the negotiating process. Do you come across as high-maintenance and demanding? Or do they see you as reasonable, honest, and straightforward?
Large cash deposits affect companies’ cash flow, and suppliers are often in want of cash for purchasing raw supplies for the goods they manufacture. If you’re open to offering larger deposits on orders, you may be able to negotiate an overall discount on your supplies, improved delivery terms, or even product customisation.
In all of your negotiations with suppliers, think strategically. Clearly define the issues and be willing to work well with all involved parties. Adopt a partnership mentality that helps all concerned parties to reach advantageous terms.
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
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Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
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