I am a good negotiator because I can communicate honestly about what is fair for everyone affected. I am NOT a good negotiator when it comes to haggling. I refuse to take part in it whether it be over fifty cents at a garage sale or two thousand dollars at a car dealership. I just want to be reasonable and work it out, not play time wasting games to see who gets worn down and caves in to the other’s demands. as many of you know, my sister is a salon owner and frequently has to enter negotiations with suppliers. She is fair and has good business relationships with her suppliers, but sometimes you get people who just want to haggle. Here is a guest post about bargaining with suppliers to get the best deals. I hope these 5 tips can make you more prepared when entering into business negotiations. Remember to be fair because getting a good deal is not worth jeopardizing a long term business relationship.
5 Bargaining Tips Worth Attempting With Your Supplier
For your business to be profitable, it’s important to reduce expenditure as much as possible. As a means of reducing costs, bargaining with your supplier is usually an area that is neglected. It is best to instigate negotiations before you sign anything, so make sure that you sharpen your haggling skills before you enter into any agreements.
Act As If You Don’t Need Their Business
Before you head into the initial meeting, always have a Plan B and a Plan C. If you enter agreements desperate to seal the deal, you’ll come away with a bad agreement. Don’t be afraid to walk away if you have to. You may find that they chase you up afterwards with a better deal.
Don’t Make Concessions
As soon as you start making concessions to the other party, you’re on a slippery slope. Only make an agreement, however small, if it’s also beneficial to you. Use the language of negotiation, showing how you can come to a settlement if the side makes sacrifices too. As soon as you start making concessions, the supplier gains the upper hand, and it’s hard to regain the power.
Haggling For Price
Obviously, you’ll want to begin with a low price; possibly lower than what seems feasible to the supplier. It’s rare that the other party won’t demand more money than they expect; that’s haggling for you. So propose a sum that isn’t laughable, otherwise they’ll stop taking you seriously, (and it may even appear insulting), but choose an agreement that’s on the stingy side (slightly less than you’re willing to pay). Don’t be afraid to be reasonably ambitious, otherwise you may be cheating yourself out of money, and who knows, they may be happy with that proposal!
Tactics of Negotiation
Whatever you do, remain emotionally detached at all times and hold a calm discussion. Always remain mature in your negotiations and ask lots of questions to force your suppliers to be transparent – it shows you’re listening, but it also helps protect you against being fleeced.
Words are really important; call them on the way they’ve worded a contract, if it seems like it may create a loophole. Force your suppliers to be crystal clear and frank with you. If you feel like they are trying to sidestep an issue, speak up!
Never go into the meeting without previous research; get several quotes from other suppliers and use evidence of the market to back up your points. It’s not the end of the world if you don’t come to an agreement with this supplier, even if they’re your first choice. Always have back-ups and make sure that your client knows you’re shopping around.
Focus On The Supplier’s Weaknesses
It’s easy to start focusing on your own Achilles Heel. Put your weaknesses aside and begin analyzing your suppliers. Is business tight for them at the moment? Do they need to shift stock? Knowing that they need you as a customer can bolster your confidence and keep the power in your hands.
Zoe is a freelance beauty and business journalist who enjoys using business know-how to help others keep their finances in check. Any stylists reading today can check out salon suppliers online, for all the best deals.
! Have a Fabulous Day ! – Jenny at Dapperhouse