Wednesday, 25 June 2014

Negotiating Tactics Can Be Learned Through Vendors

Authored by Usman Ghani

Most of the companies often do not understand the logic behind the pricing of commodities with suppliers or we call it negotiation,Specially the departments deal in Procurement/Logistics. Supplier may have many logical reasons to reduce his price,most of the suppliers will often realize you that the first price offered to you is the best price reduction according to him and the buyer should accept it without any doubt. Companies used all there reasons to reduce the prices of the items/Services but the vendors has the more defending power for his prices so at the end you run out of reasons for getting lower prices.
  • Always keep a valid reason for asking vendors to reduce the price.
  • Always ask for price reduction but with authentic reasons.
  • Repeat the exercise for asking reduction in price.
As we all have idea that negotiations happening all the way around in over life and everyday in fact its a routine part of our life, but in supply management chain negotiation tactics are used to yield best results.

Always keep the data or history record of supplier to whom you already had negotiations in past. You should also know the personality and characteristics of the vendors that how easily you will treat him/her. Always gives a proper welcome of sometime to your vendor and ask about there children,vacations,health before negotiating using these tactics will give a warm tone before commercial discussions.

The best tactic will lead to the art of negotiations and will surely yield result oriented performances. Stay tuned to get more about procurement and its classification in our next discussions.