Negotiating with vendors can be tricky — especially if you aren’t counting your revenue by the billions. But believe it or not, it can be done.
The same deals that the big companies get can be achieved by small-to-medium-size companies, too. According to Scott Drobes, managing partner of consulting firm Third Law Sourcing, it’s all about honing in on these strategies.
Leverage growth and value
Suppliers like dealing with smaller companies that show signs of growth, because they bring in new sales and signal the biggest opportunities for them. Even if you’re spending modestly, you can get better prices by informing your suppliers about your firm’s current and expected growth.
If they can see how that growth will come to fruition, they’ll assume that more sales are on the way and be likely to work with you toward developing a fruitful business relationship.
Understand your vendor’s place in the market
This doesn’t have to just simply be about exchanging money for goods or services. Find 0ut what else you can do to drive down costs. For example, the vendor may be in dire need of referrals, testimonials or case studies that you could provide. Also, brainstorm with your prospective vendor on ways to bring down costs of fulfillment for them.
What are some strategies you employ at negotiating table? Let us know in the comments below.