How To Get The Best Deal From Suppliers
May 8th, 2009
Many growing companies consider certain supplier relationships to be above review. This removes any incentive for suppliers to give you the best deal. Take these steps to encourage suppliers to revisit their prices.
• Get better data. Before beginning your next business development plan, find out as much as you can about what other companies of comparable size in your industry are paying for their products and services.
• Be a better customer. By finding ways to work more efficiently with your suppliers, you can cut their costs, sometimes dramatically.
• Put yourself in the supplier’s shoes. When developing a request for proposals, think about it from the supplier’s perspective. The more detailed your specs, the easier it is for a supplier to present aggressive pricing.
• Use the “good cop, bad cop” technique. Don’t allow the person in daily contact with a supplier (the good cop) to negotiate price. Bring in a second person (the bad cop) to handle negotiations.
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