How to Negotiate the Best Deal with Your Suppliers
Being a good negotiator plays a big part in becoming a successful importer.
Negotiating the right deal with your suppliers is vital — and it’s not all about finding the best price. Getting a good deal means it should also meet your requirements for delivery time, payment terms and the quality of goods.
It’s a common belief that negotiating is difficult, but it doesn’t have to be. Planning ahead before you approach suppliers always pays off. Following these tips will further increase your odds of walking away with the best deal for your small business:
Have a Viable Alternative
When negotiating, you always want to come across as well prepared — and part of being well prepared is having at least one alternative in mind.
Name your alternate supplier while negotiating, and make it clear that you’re considering another option. Explain that you will go with the supplier that offers you the most competitive bid.
If the vendor you’re negotiating with thinks they might lose out to a competitor, they may be more flexible when considering your requests.
Offer Bigger Deposits for Bigger Discounts
Just like you, your suppliers want to have their cash flow in a healthy position. One way to secure bigger discounts is to offer large deposits on your orders.
If your supplier knows they will receive >50% percent from you up-front, you will likely increase your bargaining power. As a result, they may be more inclined to cut a deal with you on the price — saving you money in the long run.
Be a Good Customer
You should always aim to be someone people enjoy doing business with — this is especially true when it comes to your suppliers. Reliability goes a long way in determining if you’ll do business with a particular supplier or partner again.
Both sides should also feel comfortable with the agreement. If you avoid putting your supplier in a corner, it will be easier to nurture a mutually beneficial relationship.
Pay your bills on time, communicate openly and frequently, and remember that while they need you as a customer, you need them too. Always aim for the win-win.
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