Negotiations with a supplier example. Negotiations for the purchase of goods. Comprehensive decision space analysis

Negotiations with suppliers are carried out in order to improve the existing conditions of cooperation, conduct bonus and marketing campaigns, etc.

We're coming to the next functional duties category manager - negotiation activity aimed at improving the terms of the cooperation agreement. Of course, it is better to achieve the set goals at the initial stage of negotiations, before the start of joint work, but, firstly, this does not always work out, and secondly, there is no limit to perfection. Let's go through the points that you should talk about with the supplier if you are already cooperating.

1. Of course, increase in deferred payments or transfer to another payment system. On the early stages cooperation, the supplier may ask for the first time to issue a delivery on the condition of an advance payment. If you agree, then before the next order, you need to talk about deferred payment, or at least 50% - prepayment, 50% - deferred payment, then, from the third order, it is quite reasonable to talk about switching to a full deferred payment. If you have a deferred payment order for this supplier, then you can talk about payment for sales or a commodity loan. What arguments should be used in such negotiations? First, it is, of course, a huge competition among suppliers and manufacturers. Do not be afraid to use in your negotiations mentions of another supplier who is ready to work on your terms. Secondly, it is worth emphasizing the desire and plans to cooperate with this supplier in the future. Thirdly, each supplier or manufacturer is interested in expanding the product range, so we can safely talk about the introduction of several new positions with the subsequent possibility of rotation, taking into account changes in the payment procedure. If you feel that the opponent cannot resolve this issue, offer a pause in the negotiations and set a new date for the call.
2. rotation. A necessary item in the work of each trading company, especially if you have introduced new positions or groups. Of course, it is better before the start of cooperation, but if this has not been achieved, then it will be now. Then, at the beginning of the introduction of a new assortment, your managers may not guess what exactly will become an illiquid product. When introducing a new line, the manager really guesses, despite the provision of analysis by the supplier ABC on its own matrix. The reason for this is general data for analysis, for you, if you do not work throughout the country, ABC analysis will be approximate, but not exact, in nature. Sales of a particular item vary dramatically depending on the region. Our goal is simple - to return illiquid goods. What to operate? Of course, with new orders and expansion of the product matrix for this supplier. We repeat, the product prepared for rotation must be in packaging with a presentation - your supplier will have to sell it to other companies, incur losses by taking goods of inadequate quality, and no one is interested in burying them in their own warehouse.
3. The procedure for dealing with marriage. Another point for negotiation is that there is too much waste, so it is necessary to increase the write-off ratio or introduce a complete write-off. Very often, the percentage of defective goods grows precisely because of the inaction of the supplier or manufacturer. For example, packaging. Not properly packaged goods, poor individual packaging, refusal to ship on pallets - all this leads to marriage, which must be discussed with the supplier.
4. Delivery. If, under the terms of cooperation with the supplier, you must pick up the goods yourself (self-pickup), it is never too late to talk about compensation, full or partial, of transport costs or the organization of delivery. This is especially true when exporting goods from Moscow, because. entry is very difficult and entails additional costs.
5. Exclusive. Of course, it is interesting to represent the company's product line for sale only by itself, to be the only representative, for example, in the region. Do I need an exclusive right to represent a particular product line? Undoubtedly, a client will come to your company for this product, having simultaneously made a larger purchase. However, the product must actually sell. What to operate? An increase in trade between companies, otherwise how to increase trade if the products are presented in each trading company, which will quite possibly bring down prices, trying to squeeze out competitors by dumping. This is not interesting to anyone, because. in the end, the supplier / manufacturer will be the last one when his goods are abandoned trading companies, because the margin may fall below the profitability threshold, and they will find alternative products. Therefore, we agree on this.
6. Price reduction/additional discount. What to argue? A high degree of competition among suppliers and manufacturers. It is important to have two or three suppliers of one product, no one obliges you to work with them at the same time, and you should not do this, but you need to analyze the proposed price lists and, taking this into account, competently negotiate. And do not be afraid to voice prices to your supplier's competitors - your interests come first. The biggest danger in this case is that the person conducting the negotiations has absolutely no knowledge of the market, prices and discounts of the manufacturer, supplier, while during negotiations with the supplier, for example, your manager talks about the need or one of the competitors promises discounts from the manufacturer's base price list of 30%, although the maximum manufacturer's discount is, for example, 5%. Trust negotiations only to competent specialists.
7. Promotions for both buyers and sales managers. It's no secret that promotions and bonuses attract buyers. Of course, no company will work at a loss and hold uninteresting promotions. But marketing campaigns are different, including those that are really beneficial for the client. What arguments to use? Of course, the increase in trade. A successful promotion is one that results in a gain of at least 30%. Consider the promotion offered by the supplier or manufacturer, try to carry out, if the promotion did not show results, it is better to close it. Promotions for sales managers are also relevant. How it works? The supplier allocates the prize fund of the promotion, information is being transferred to managers trading floor and they actively offer this product. This encourages sellers to increase sales of a certain trademark resulting in an increase in turnover.

Any item from your contract with the supplier can be discussed with the supplier again. We have listed the most common points for discussion. If you are interested, send your contracts without the details of the parties, of course, to

Purchasing involves negotiating with suppliers. This is necessary in order to:

• find out the possibilities that the supplier has;
• conduct a preliminary conversation and discuss the terms of a potential deal;
• conclude a deal and sign a contract;
• agree on deliveries;
• find out the progress of the order;
• make a complaint;
• work out the claims of the supplier;
• change the terms of the contract, etc.

The effectiveness of the procurement process depends on how you prepare for negotiations with suppliers. Care should be taken that you know how to proceed at each stage of this difficult conversation.

How to prepare for negotiations with suppliers

Step 1.Determine the goals of negotiations with suppliers

Find out why you are doing it. Negotiations with suppliers are a kind of bidding, which should have a goal. Determine the range of the desired result, that is, the minimum result that suits you and the maximum that you will be completely satisfied with. The goal should be written in such a way that the wording is specific. It is important that the result can be measured using qualitative and quantitative indicators. The goal should be realistic when measured in terms of your organization's resources and the capabilities of the supplier.

You need to decide on volumes, unit/batch cost, terms of payment, delivery, quantity of shipments, packaging standards, warranty obligations and other parameters that you consider important. The total cost of the purchase will depend on all these points. In other words, before starting negotiations with the supplier of goods, fix for yourself the conditions on which you agree to conclude a deal.

Don't forget intermediate goals. We are talking about obtaining information about suppliers, competitors, options for the development of events in the market, product analogues, etc.

Step 2Make a list of requirements

Partnership is impossible without finding compromises. Good results during negotiations with suppliers are achieved by those who cooperate, guided by the motto "Concession for concession!". You need to prepare a list of requirements and estimate the cost of each of them. You need to think about how you will benefit from these factors in the future. It is desirable that you can analyze the importance of your requirements in qualitative and quantitative terms. If you carefully approach the compilation of a list of conditions that you are striving for, then purchases, negotiations with suppliers will be successful, and you will get the result you need.

Step 3Calculate your concessions

If you plan to demand something from the supplier, then it is better to prepare options for reciprocal concessions on your part. And, of course, the price of the issue is also important in this respect.

Negotiations with a supplier of goods require careful preparation. Take a sheet of paper and divide it into two parts with a line. The left side is for concessions that have a certain value. We are talking about prepayment, payment after the fact, reducing the delay in payment, self-delivery, increasing the volume of purchases, reducing the number of deliveries and other important points.

The right column is used to record concessions that, at first glance, may seem to have no value, but they contain a different benefit or benefit for the supplier. We are talking about the guarantee that you will place an order of a certain volume, support the brand of the supplier, participate in advertising campaigns etc. By the way, such a list can be long.

Step 4Preparing arguments

Remember that the buyer is also engaged in a kind of sale. But he is selling his future money. You need to learn how to demonstrate the qualities that make your firm different from everyone else. It is important that you are able to convey to the supplier that cooperation with you is promising.

When preparing to negotiate with a supplier, think of all possible arguments that will demonstrate the validity of your requirements. Reflect on what your partner's expectations are in line with them. Do not forget that the weight of the arguments is determined by the point of view. We recommend that you mentally take the place of the supplier and look at the situation through his eyes. If you are looking to establish new conditions, then you can not do without graphs and charts that show the growth in purchases, forecasts of their increase, etc. Through visualization, you will emphasize the significance of your arguments. You also need to think about the criteria by which you will evaluate the proposal made by the supplier.

Step 5Find out information about the supplier

Think about the details about your partner that you need to clarify during the negotiation process. Get a "customer card" and record in it the information that is important to you so that you can use it in the future.

We are talking about such information as birthdays, complaints, requests, agreements, etc. According to our data, many successful buyers keep such supplier cards. Agree, this way you can prepare for negotiations much more effectively.

If you renew cooperation with a company with which you worked previously, then you just need to raise your records, which record all the pros and cons of such a partnership. So, negotiations with suppliers will be more successful if you have already collected information about your interlocutor. If there are many shortcomings, then you need to determine how the seller should change so that you can interact more effectively with each other. If you are interested in such cooperation, then try to find arguments to explain to the supplier that changes are needed. You should especially carefully approach this issue if you are in a dependent position in relation to this partner and changing it for another is unprofitable for you and your organization.

It is also important to understand the mechanism by which decisions are made in the seller's company. You need to understand who can influence this process, how long it takes to get this or that answer from the company, what are the powers of the person with whom you are cooperating.

Step 6Cooking compliments

To create a positive emotional atmosphere, the negotiator often uses the “small talk” technique. We are talking about a story that is fascinating for the interlocutor, informing him about significant events, quoting mutual acquaintances, references to previous conversations. By the way, if you search the Internet, the press, you can find information about the supplier, which should be used for a "small conversation".

Step 7Putting together a "portfolio negotiator"

If a supplier comes to your territory, then make sure that the meeting room is ready to receive him. Check that tea and coffee are available. Negotiations with a supplier of goods that are interrupted due to some unpleasant interference or situations are fraught with unnecessary apologies on your part and a spoiled impression of you and your company.

Make sure everything is in order with your "desktop". We are talking about business cards, letterheads, templates, certificates, advertising materials etc. Do not forget about the notepad (which, by the way, should always be with you, regardless of where the negotiations with the supplier of goods take place). Be sure to put your phone on silent so that nothing can distract you from the conversation.

If you take care of these points, you can feel confident, and negotiations with suppliers will be successful and give the desired results.

Checklist for preparation for negotiations with suppliers

1. I have decided on the purpose of negotiations with the supplier of goods, I know what minimum / maximum result I need.
2. I know what the real current market situation is and I am sure that the conditions that I offer are more favorable than the similar offer of other buyers.
3. I know the history of the relationship between our firm and this supplier.
4. I prepared a list of my requirements and ranked them according to their importance to our firm.
5. I have prepared a list of reciprocal concessions and pseudo concessions.
6. I know all necessary information about the supplier.
7. I have compiled a list of questions that I plan to get answers to in the course of negotiations with the supplier.
8. I have ready arguments that will allow me to convince my partner to agree to the conditions we offer.
9. I visualized important information to convey to a partner.
10. I know the person with whom I will negotiate (his work experience, position, area of ​​responsibility in making decisions in the company).
11. I prepared variations of the "small talk" in order to create a positive atmosphere.
12. I put together my “negotiator portfolio.”
13. I agreed on the time and place of negotiations with the supplier of goods.
14. I made sure the meeting would take place, in the morning or evening, before I left.
15. I am positive and ready to negotiate with the supplier of goods.

Organization of negotiations with suppliers

So, you are ready to negotiate with suppliers. Now you can move on to making contact with your partner. Do not forget about the features of different communication channels. As you know, there are only three of them. Let's talk about their distinguishing features.

Communication channels:

1. Telephone. This channel is suitable for collecting primary information, getting clarifications, and arranging a meeting. Telephone conversations have one significant drawback. The fact is that in the course of a conversation you are limited in the use of a non-verbal communication channel.
2. Writing. This channel is suitable for exchanging business information with the interlocutor, clarifying the nuances and details, agreeing and fixing the agreement.
3. Personal meeting. The channel is distinguished by mutual interest in cooperation. To hold a personal meeting, it must be coordinated and prepared. Such communication allows using and analyzing both verbal and non-verbal information.

All negotiators can be divided into five types. Each of them has a personal style of conducting business conversations.

1. Soft. Such people negotiate with suppliers, focusing on relationships with a partner. They are easy to find mutual language with anyone, but they can also be too soft and quickly agree to the conditions and concessions that a partner requires, even in a situation where this is completely unnecessary.
2. Analytical. Such a negotiator considers all the details, evaluates everything rationally, but takes a long time to make a decision, because he cannot present the whole picture, clinging to individual points.
3. Entrepreneurial. Such a person can come up with an alternative option on the go. We are talking about a quick and charismatic negotiator who, unfortunately, cannot boast of attention to detail.
4. Hard. A person is distinguished by assertiveness and a desire to achieve the desired result. However, he can put too much pressure on his partner.

It is believed that the personality of the negotiator is 60% related to one of the above types, and the remaining 40% are determined by the versatility of his nature.

The ideal negotiator combines all styles. Of course, this is practically impossible. The best results will be achieved by a team that has employees who have all of the above traits that are characteristic of a soft, analytical, entrepreneurial, tough negotiator. The conversation should be started by someone who has a pleasant, calm communication style. This is necessary so that negotiations with suppliers take place in a safe environment, contact is established between all participants. Next, the analytical type negotiator comes into play. He knows how to work with details, comparisons, calculations. Then an entrepreneurial negotiator joins in. You can’t do without it if the conversation has reached a dead end and it seems that there are no alternative options. Next, you need a tough negotiator who will complete the conversation by setting the accents and getting the result required by the team.

In practice, of course, this is not always possible, but it is important to remember that a trained team with at least two members is suitable for conducting “difficult” negotiations (for example, a good alliance will come from an analyst and an entrepreneur).

If you feel that your position in negotiations with suppliers is weak, then we recommend that you start with those issues that are easy to reach an agreement on, and not those that can cause a heated debate. It is important to understand that it is easier to determine a solution that suits both parties on one of the controversial points if you have already found a common language by talking about simpler things. Do not forget that it will be easier for the supplier to perceive you if you focus not on your differences, but on the contrary, on commonality. As you know, if the parties have common interests, then it is easier for them to find a solution that will suit everyone. Remember one more tactic - sum up the negotiations. This will allow you to once again voice the decisions that you came to during the conversation. To make negotiations with suppliers as successful as possible, observe the following rules.

1. When both sides mutually expressed their positions, it was time to "bargain".
2. Do not make free concessions, be sure to get something in return!
3. At the beginning of negotiations with suppliers, the "rule of half" should be observed. It suggests that when making a concession, you need to understand that each “relaxation” should be equal to half the path that is between your current position and the position to which you are ready to accept. Of course, there is no need to be zealous so that it is exactly half. But you need to remember about general principle. The biggest one is your first concession, but further ones should be reduced and your resistance increased each time.

Negotiations with suppliers: main stages

Making contact

So, you are ready to negotiate with suppliers. It's time to get in touch. At this stage, you need to know the name of the interlocutor, his position, agree on the goals of the negotiations, analyze their likely duration, and determine their format. Special attention should be given to the atmosphere that says that the supplier is interested in communicating with you. We are talking about a clearly expressed personal contact, trusting interaction.

To get in touch, you need to do the following:

1. Greet the interlocutor. Pause for the supplier to greet you back.
2. Introduce yourself. Pause for the other person to give you their name.
3. Shake hands. It is important that it be certain.
4. Exchange business cards. Put a business card in front of you, and if the interlocutor does not have one, then write down his name and contact information.
5. State your position and the company you work for.
6. Agree on the purpose of the meeting.
7. Determine how long the meeting will last.
8. Agree on the format of the meeting, announce who, how and in what sequence will negotiate.
9. Introduce personal aspects into communication, evaluate internal and professional quality interlocutor, emphasize his usefulness and social significance, expert position, etc.

When negotiating with a supplier of goods, you need to be able to win the initiative in communication. To do this, you need to dynamically start a conversation, quickly move on to a business conversation. It is important that there are no intermediate zones between the points that relate to the content of the conversation, and those that are required for organizing negotiations. You should create the feeling that you and the opponent are partners, communicate with him kindly, monitor his reactions, demonstrate that you have a positive attitude towards him.

The further development of negotiations with the supplier of goods depends on whether you managed to create a quality personal contact. Be mindful of non-verbal cues that indicate deep interaction. These are eye contact, leaning towards you, raised eyebrows, open eyelids, smiling, open posture, free gestures.

Information exchange

If you have created a positive and trusting atmosphere for negotiating with the supplier of goods, then you can proceed to the mutual exchange of information.

We propose the following action plan at this stage.

1. Clarify what the essence of the supplier's initial offer is. You need to find out what he would like to sell you, under what conditions, in what quantity, etc.
2. Find out what the interlocutor's expectations are, why he is interested in such a deal, what is his motivation. Perhaps we are talking about a good remuneration, maintaining the image, confirming the status of a reputable company, etc.
3. Find out which conditions are most important and why, which parameters are strictly marked, which ones can be discussed.
4. Record the information you receive and make sure that you really understand everything correctly.

This stage is very important. You need to make contact and get the information you need to offer exactly the terms that the supplier will inevitably agree to. To get the desired result, you should learn to listen and hear your partner during negotiations with the supplier of goods. Remember that the listening process does not involve waiting for your turn to speak. You need to focus on what your interlocutor is saying, and not be distracted by your own thoughts. To do this, you need to ask your partner questions, make sure that you understand him correctly. Take notes, analyze what the interlocutor said.

While you are identifying your partner's needs, 80% of the conversation should be his speech, and only 20% yours. Do not forget that you only need to clarify the details and make sure that you understand everything correctly during negotiations with the supplier of goods. At this stage, you should not make any suggestions or dispute anything. If the supplier has any questions, answer them, and then ask your own. Your answer should contain only information, no promises should be made. For example, you can say: “Yes, in some situations we work with pay-as-you-go. What conditions can you offer for your client who is ready to go for it?”

Reach an agreement

Now you understand your partner's needs. You know under what conditions he is willing to work. In addition, you have gotten to know him well enough, studied his speech, and you can move on to formulating your proposal.

To reach an agreement in negotiations with the supplier of goods, follow the action plan.

1. Formulate the offer that the supplier made to you. Wait for his response.
2. Make your offer. Now you need a pause so that your partner can think about your answer.
3. Evaluate how your partner reacts to what you said.
4. Check that you correctly interpreted his words. For example, you might say, “I thought you had some doubts. Is it really so?
5. If the partner has doubts or objections, then find out what they are connected with.
6. Offer arguments that match the needs and motives of the interlocutor, work out objections.
7. Agree on a proposal that suits both parties.

In order for negotiations with a supplier of goods to be successful, you need to be able to pause and control your emotions. For example, the supplier said: “Your requests are too high. Our other customers buy this volume in advance and receive a discount of no more than 5%.” You can answer: “Yes, we formulated the request clearly, and this is due to the fact that we are planning subsequent purchases from you. If we're talking about a one-year contact, how much sales would you expect?"

You should focus on the task, process all the information received. You need to learn to listen to your partner when he expresses his objection. When you have made an offer, wait for a reaction, let the interlocutor think. No need to try to argue your position, just pause. Over time, you will find that the silence will not last longer than thirty seconds. You should record absolutely everything, even when it comes to seemingly insignificant, at first glance, details. Use a paraphrase to make sure you and your partner understand each other correctly. If you do not forget about such nuances, then it is not so difficult to negotiate with the supplier of goods and come to a mutually beneficial solution.

Closing the deal and closing the contact

After you have agreed on each point of your agreement, you should summarize the results of negotiations with the supplier. Many people forget about this and do not talk about the mechanism for monitoring the treaty. It is important to discuss several important details. We are talking about determining the conditions for concluding a contract and fulfilling an order. Find out how the work will be done. Find out exactly who, at what time, how and for how long will fulfill the terms of the contract. Check each of the items and make sure that the supplier is ready for these actions. You can talk like this: “So, today we are ready to sign all the documents and send a courier to you tomorrow at 11:00. Please tell me who can receive correspondence? Could you sign the contract right away and send it back with our courier?” It happens that clarifying questions force the interlocutors to start the discussion again, as it turns out that the supplier imagined something completely wrong.

So, you have agreed on all the nuances. Now you need to demonstrate to the interlocutor that he is valuable to you as a partner, that you can answer his questions. You should not pronounce the phrase on duty: "I was pleased to talk with you." Say that you are actually very lucky to work with such a specialist. It happens that negotiators experience a downturn after a deal is made. The conversation must end on a high note. Give a piece of your warmth to your partner and do not forget about a strong handshake before you go about your business. It is very important to complete the contact correctly, as the success of negotiations with suppliers depends on this.

Analysis of negotiations with suppliers

Also, do not forget about final stage, which, as a rule, many do not pay attention. Follow the action plan.

1. Record each of the agreements made in your work plan.
2. Make sure that the necessary information is passed on to the appropriate departments. Make sure they are ready to complete tasks on time. Don't forget what you concluded this agreement and are responsible for everything that you came to in the course of negotiations with suppliers. It is important that you enter into the accounting schedule the payment of invoices that have been issued. Avoid overdue debts so as not to worsen the terms of a future contract.
3. Make sure that all information about the agreements concluded is included in your database. Record the personal characteristics of the seller. You can use this information in subsequent negotiations with the supplier of goods.
4. Fix the most successful of those arguments that you used. Analyze the objections that the opponent used. Think about how you could answer them differently.
5. Praise yourself for successfully negotiating with the supplier of goods. Conduct an analysis of ineffective actions. Determine how you will behave in a similar situation in the future.

6 rules for negotiating with suppliers

Rule 1Do not respond positively to the first offer made by the opponent

Be confident when expressing your refusal when negotiating with suppliers. Surely you are surprised. Yes, you should be open about your negative emotions. You don't have to accept the first offer, even if it's excellent.

The buyer seeks to make you doubt. He will easily achieve this if he reacts negatively to your first, and maybe second proposal. It's easy to explain. The fact is that if he accepts your conditions immediately, then both parties will be disappointed. The buyer will feel that he could have asked for more, and the seller will regret that he did not offer less. Such negotiations with suppliers will ultimately lead to nothing good. The opponent needs to make you doubt your proposal so that you feel that it is actually “bad”. The seller seeks to destroy your homework (arguments) as well. The supplier needs to negotiate in accordance with his scenario, which is built in such a way that the opponent plays a far from heroic role in it. If the homework was destroyed, then you are forced to navigate the situation and come up with something new. It should be remembered that only prepared improvisation is good. If it is not thought out, then this is fraught with additional errors.

How to counteract this approach? When negotiating with suppliers, be emotionally restrained, carefully work out the options that you have prepared in advance. It is extremely important to be able not to succumb to emotional pressure and work with each specific objection individually without haste and anxiety.

Rule 2Always demand the impossible

This will give you space to make further maneuvers. After all, it is impossible to exclude the possibility that your "sky-high" offer is not what the supplier is ready to go for. Insist that you need more margin. This will allow you to lower it a little in order to get the consent of the opponent.

Don't forget the one in six rule. If you need a discount of 1 ruble, then demand a price reduction of 6 rubles. It is likely that you will agree on 3 rubles.

Rule 3 Tell the supplier that they need to improve their offer. Let him go and come back with a better option for you.

What is this approach for? Like the previous one, it allows you to unsettle your opponent. If the buyer refuses to continue negotiations with the supplier of goods, then the latter is forced to reconsider his offer. He critically assesses the prices and terms of the contract. He has to think about the possibility of granting deferrals, bonuses and additional services. He fights with himself, and this, as you know, is the most terrible opponent.

If he later analyzes and tries to understand what made him make a deal on such unfavorable terms, then the conclusion will be disappointing, because he did it himself. No purchaser could have forced him to agree to such an agreement. So, the supplier, who went on about the buyer, is struggling with his own inner self.

Rule 4 Feel free to use an argument that seems illogical to you. This technique is powerful and allows you to confuse the enemy.

This is a very interesting and exciting technique. Imagine that you are negotiating with a supplier or some other person, and, for example, you need to sell water to him. And he says: “This year is a very rich crop of coffee, prices have collapsed, and you do not give us a discount on water. The coffee company reduced the price for us by 45%, and we cannot agree on 4% with you.” Therefore, the opponent has tied together things that do not depend on each other in any way. And in such a situation it is difficult to determine whether you are facing a person who is trying to manipulate you using very strange arguments, or just a person who perceives the surrounding reality in a slightly different way.

Rule 5The broken record rule.

We are talking about the so-called spoiled plate. To use this technique during negotiations with a supplier of goods, you just need to repeat the same offer or objection, as if you were stuck. For example, it could be the phrase: “Your prices are too high!” This technique will be especially effective if combined with illogical arguments.

This rule will make the opponent less confident, hit his time budget and the preliminary logical chains that he built.

Rule 6Stay wise, but pretend to be stupid.

Ask the supplier to explain to you the terms they offer, as you simply cannot understand them.

The fact is that the opponent will feel the smartest. As soon as he decides that you are weaker and dumber than him, he has already lost. Remember to never underestimate your opponent.

How is this technique used during negotiations with a supplier of goods?

You have probably met with a situation where you are asked to talk about your product, the technology used, the details of the offer. The opponent asks about things that even a child would understand, and asks you to explain exactly what you mean.

This situation encourages the supplier to feel superior and begin to describe the details of his offer using new way convey information to an opponent who is not too smart. An opponent caught in a trap shares more information than planned. This will allow you to obtain information that can be used as arguments when dealing with objections. The new information gives you leverage to put pressure on the supplier.

How to Negotiate with Suppliers You Already Do Business With

1. Increasing the delay in payments or transferring to another payment system

If you are just starting your cooperation, then it is likely that the supplier will require an advance payment when making the first delivery. If you agree to this, then do not forget that next time you need to discuss the possibility of postponing or paying only half the amount. And with the third order, you can ask to switch to a full deferred payment. If you have agreed on this, then, if this is relevant for you, try to cooperate on the terms of making payments to the supplier upon the sale of the goods.

What arguments can be used in such negotiations with suppliers?

First of all, you need to remember that there is also competition among manufacturers. You should not be afraid to mention other partners who are ready to cooperate with you. You also need to make it clear to the supplier that you are interested in working with him. And, of course, do not forget that the seller benefits from an increase in purchases, so you can offer him to expand the assortment range, provided that the payment procedure is changed. If the opponent cannot agree to this, then offer to take a break in negotiations with the supplier of goods.

2. The procedure for dealing with marriage

Negotiations with the supplier of goods may relate to another, no less important issue. It's about marriage. If there is a lot of it, then an increase in the write-off coefficient will be required. Often the number of defects increases precisely because the supplier is inactive. For example, the case may be in the packaging. If the goods are poorly packaged, this can lead to an increase in the percentage of defective goods. Be sure to discuss these issues with your supplier.

3. Delivery

If, according to the contract, you pick up the goods yourself, you can negotiate with the supplier of the goods and discuss your right to full or partial reimbursement of transportation costs. This point is especially relevant when it comes to Moscow, since entry can be difficult and involves additional costs.

4. Price reduction / additional discount

What arguments can be used? One should not forget about the high degree of competition between suppliers. Always have more than one seller for the product you need. This does not mean at all that you need to work with each of them. But it is necessary to analyze the proposed price lists. And, already taking into account the data received, to negotiate with suppliers. Don't be afraid to talk about the prices your competitors are offering you. The only danger lies in the collision with a person who does not have up-to-date information about the market and prices. Therefore, negotiations with suppliers should be carried out only by a competent specialist.

5. Promotions for both buyers and sales managers

Obviously, the buyer can be attracted by promotions and bonuses. Of course, the company will not work at a loss and engage in uninteresting advertising projects. A marketing action can be beneficial for the client.

What arguments should be used in this case?

Of course, during negotiations with the supplier of goods, one should say that the turnover will increase. The performance of the promotion is considered positive if the increase in sales is at least 30%. It is important to consider the options for promotions that the supplier offers and carry them out. If the action does not bring results, then it is better to end it.

Today I will talk very briefly about the call to the supplier. Not about searching, not about negotiations, not about meeting, but only about making a phone call.

It is advisable to call the supplier immediately after you have tested the niche and you have a list of customers ready to buy. It's psychologically easier.

So what are you doing. You collect a large number of supplier contacts in your niche into one table. It is better to dial at least 50 contacts. We will not talk about the methods of dialing contacts now, I will only talk about the simplest ones: acquaintances, Yandex, 2Gis.

Then you start calling. My advice is to start with the least important suppliers to practice with and work your way up to the best suppliers and those in your area.

I will formulate for what purpose you are calling, at least the supplier should think that you are calling for this purpose:

you have many or several customers for the product, you do not have this product yourself, you are ready to transfer these customers to the supplier for a small fee. Everything.

Now let me give you a couple of conversation scenarios as an example. Previously, we called and immediately started talking about the agency agreement, but now we prefer to talk about the agency agreement as late as possible, or not at all. The bottom line is that many suppliers are allergic to this phrase "agency contract", some do not understand what is at stake.

Here is the scenario with the agency agreement:

C supplier on behalf of the company

“Good afternoon, tell me, do you sell potatoes?”. He says: “We are selling, but what are you interested in?”. “We need Dacha potatoes. You understand what's the matter. We are a company that deals with vegetable products. On the this moment we have about ten customers who want to buy potatoes of this variety on a regular basis.

We cannot provide them with potatoes now, so we are choosing a supplier with whom we will work, to whom we will give these orders. We are ready to work on the terms of an agency agreement.

In general, in general, are you interested in getting these customers (can you specify the volume and amount of the order)?” Often the supplier agrees and says, "Let's talk."

If the supplier agrees, you say: "Okay, let's do this, I'll send you the agency agreement to your e-mail, look at it and if everything suits you, then we'll sign it, because people are already ready to buy."

C supplier on behalf individual

"Good afternoon, do you sell potatoes?". "Yes, we sell." Then say: “I am interested in potatoes in such and such volumes.

The fact is that this is not my main activity at all, it just so happened that I now have a number of clients who want to purchase such a volume in total.

(You can come up with a legend, like: I'm currently working in a design office, so clients are constantly asking about building materials, etc.)

In general, I am now choosing who to work with, it is important for me to understand whether you can provide such a volume and, in general, whether you are interested in getting these clients. Because clients come all the time and, in principle, there will be about ten such clients every month.”

If he answers: "Yes, I'm interested," say the following: "Well, look, I'm ready to carry out the first shipment on the terms of an agency agreement, will this option triple you?" The person says “yes”, you throw off the agency agreement for him.

Scenario number 2 absolutely the same, only you do not immediately talk about the agency agreement, but ask the supplier: “I am ready to transfer these clients to you for a small fee. How do you usually arrange and conduct such transactions? Listen to what he has to say, discuss all of his proposed options and perhaps agree with them. And only if the supplier does not know what to do, you can offer to discuss the agency agreement.

In general, there are many such scenarios. In my practice, we and our students used various legends. For example:

1. We are a sales department! Call and say that you are a remote sales department in wholesale business. You have a whole state professional sellers, telephonists, managers, traffic managers, etc. and you can be an outsourcing sales team for free.
2. You are looking for ads for the search for sales managers at the supplier. Call the ad and offer to work for free and remotely for a percentage. You will understand further.
3. Call on behalf of the buyer. “I have a vegetable warehouse and I want to buy. Later it turns out that you are not yet ready to buy (the warehouse has not yet been built, the volume is not needed, other nonsense), but you have partner companies that are ready to buy. Naturally, you will transfer them only for a small percentage. The essence of this method is that you are initially communicated with as a client, and not as an obsessive agent - a beginner.

With a secretary

You don't need to talk to the secretary. Your task is to talk only with a person who can make decisions about sales or purchases. So about it in the forehead and ask!

We say: "Good afternoon, connect with the sales department or with the head of the department." Here it is very important to pronounce it very confidently, if it works out, then she will immediately redirect you to the right person.

But it is possible that she will begin to balk and say something like: “What issue are you calling about?” You can say that you are calling about purchasing. If you say this as confidently and convincingly as possible, then the secretary will not have any questions, she will simply connect you.

- more or less clear. There is a choice, there is something to lose to each other, with the condition of restrictions and the market, it is proposed to choose the most convenient option. But what to do, for example, when there is no choice, there is one sole supplier goods and services? How to behave with him? Current economic situation, by the way, contributes to the fact that competition in a number of areas will be reduced to zero, and buyers need to oppose something to the "force of evil" (thanks " Star Wars" for the term). So what to do?!

Probably everyone has heard a wonderful anecdote about strategists, when an owl says to mice “We must become mice!”. For the most part, most negotiation training courses boil down to the same thing. People who did not negotiate with the supplier, did not stand in the position of the “weak link”, had no choice: you will agree or tomorrow the plant will get up or the authorities will fire you due to the lack of goods at the required price trying to teach it. Precisely because it is so easy not to teach negotiations in courses, especially with strong suppliers, this will be our first and most likely last article on the topic of negotiations.

Let's first understand why there is only one supplier and why you need their product.

There may be several reasons:

“Historically, he's the only one producing it. ( this was the case with rails, for example, until recently)

— Technical limitation when the enterprise is sharpened for one type of raw material

- Some suppliers dumped, killing competition and surviving rivals from the battlefield, and as soon as they left, they decided to raise prices.

- Large buyers get all the best, and the rest plus many percent of the price and growth every day, thereby killing the competition in the final product.

There are others, but in any case, whatever the reasons for which the company finds itself in a “weak negotiating position”, they need to already put pressure on the strategic component, rather than trying to “bend on price”. We decided to help a little with this issue and offer a set of four steps that (we hope!) will help the company get, if not desirable, but close to it, the price in a market where you have little choice. Here is what we offer:

Negotiating with suppliers step #1: try to explain the value of you as a buyer to your supplier

It's not that by buying his product, the supplier will make a profit. A slightly different story.

For example, your product is exported. And using raw materials / goods / components abroad, you can open a "local monopoly" foreign markets. Maybe your department international development much stronger than the supplier. It cannot enter the same markets, but your product can. Open the “doors” to him, ask for a discount for using him for an export product.

For example, reduce supplier risk. It happens that large manufacturers, again "historically" tied to the raw materials of a small supplier. A small supplier can raise prices, because he understands everything perfectly. True, its production volumes are also not unlimited. So what to do? Move on to consider a long-term agreement that will allow both him and you to plan volumes. Both he and you reduce the risks of loading / receiving raw materials. A 10-15-20 year contract with a clear rate of return may be of interest to the supplier. And in return - a 10% discount on the basic current prices - an equivalent exchange.

Negotiations with suppliers step number 2: change the procurement format

If you do not feel that you can bring additional value to the supplier, then let's think about how to change your purchasing format.

For example, . It often happens that in large companies, different divisions purchase similar goods and services from the same supplier. This leads to the fact that the supplier successfully uses the moment, earning much more from customers than you do not sell your products. What to do? Consolidate. We already wrote an article on this topic some time ago. It is located here and you can view it.

Another format for the consolidation of volumes is the creation of consortia, associations, groups among small consumers. Together they can give a "good carrot" to suppliers and they will simply be forced to cut prices. Another question is that in fact competitors will join this association and how our FAS will look at it. We need to study the details.

For example, buy something else besides a specific item. If it is not possible to collect significant volumes of goods to offer to the supplier, you can see what else from the purchased can be placed with him. Even if there is an alternative, but this supplier is ready to supply market prices, and in addition to give a discount on products that you will not buy anywhere else, if it is economically justified - you must use it!

For example, reduce consumption. Honestly, when the supplier realizes that he really has something to lose, that with such prices you can easily find an alternative product or rebuild internal processes for another supplier, he will change his attitude towards you. This can probably be called one of the most powerful tools in the fight against unfortunate monopolists.

Negotiations with suppliers step number 3: create another supplier

As they say, "you can't fight a competitor - buy it." If your company can afford it, then why not use it. But this article is rather for those who cannot afford to buy everyone who gets into a tough contract.

For example, to create and develop other suppliers. The situation when, as a result of dumping, the majority of suppliers disappeared from the scene is common in our time. But who to look for and take on "development"? It might be better to start with foreign companies who are considering, but not yet ready to come to the country of presence. With your support, a small report on the market, volumes and consumers, they may be interested in this offer. In second place are local suppliers with a small market share. You can negotiate, guarantee the volumes for which they will expand capacity, get reasonable prices and get out of the monopoly situation. Or send your "landing" to the development of their processes and the search for weak links in the same supply chain that do not allow them to compete, but by finding guarantee themselves savings.

For example, to produce. If you think that in the wording "Make or buy" you are getting closer to Make - act! Start developing your production if it does not require heavy investments. Correct calculation together with the financial department can improve your market situation. Therefore, always communicate with colleagues.

Negotiations with suppliers step number 4: we start to fight with suppliers

Correctly assess your strength before getting into tough opposition. Find an alternative, reengineer processes, buy large stocks. Count so as not to lose in the upcoming fight. Rigidly close all projects with suppliers and their access to competitions, remove them from everywhere, from all articles about suppliers and products. To share information about the work of the supplier with the market as much as possible. This fight must be endured.

As you can see, you can not immediately give up, you need to look for options. If suddenly you are the head of the company, and your buyers show all the hopelessness of a particular supplier for you, doubt it. Probably, everything is really bad only in 10-15% of cases (we exclude oil, gas and other monopolies), in the rest you can look for options to reach an agreement, change the format of work and purchases.

We hope that this article will help you a little in your work and communication with suppliers and buyers. If you have other ideas on how to negotiate in a situation where you need a supplier more than he needs you, write to us. We will collect options and supplement the article!

“Lucky is the one who is lucky himself” - this is what the proverb says, and we absolutely agree with this.

Continuing in small business, let's talk about how to negotiate with small business customers and suppliers. These are the negotiations the small business owner conducts most often. He will have to conduct such negotiations almost daily, and even several times a day. Therefore, given their importance, I will dwell on them in more detail.

Introduction.

Most often, the owner has to negotiate with customers - consumers of his product. Here is the question of the price for it, delivery time, after-sales service, product quality, etc. It makes no sense to talk about the importance of such negotiations. After all, the profitability of a small business and even its existence directly depend on their results.

These negotiations must be prepared from preparatory phase building your small business. You will continue to carry out these negotiations throughout your activity in business. On these issues, you come into conflict with the consumers of your product - you naturally want a higher price, but he, of course, wants to get lower, get faster delivery times, perfect service, long terms warranty service. And so on for each question.

How to negotiate with clients.

Try, before starting negotiations with the consumer, to collect as much information about him as possible. For example, from whom he buys or bought a similar product, at what price he buys and sells, what kind of service your competitor offers him, what are the delivery times of the competitor, i.e. study this issue thoroughly. You need this to successfully negotiate.

Try to prepare backup options (preferably several) for the supply and sale of your goods before starting. You will feel more confident in negotiations. A negative result will not be so terrible for you. You do not need to make maximum concessions in your offers.

Think carefully about how you build a conversation with the consumer. I advise most of the issues in such negotiations to be discussed comprehensively, linking them together. For example, by seeking a higher price, you are inferior in terms of delivery or extend the warranty period. Of no small importance, and can be a strong argument in negotiations, such a factor as the timing of payment for the product.

Depending on the health of your small business, you may want to extend your payment deadlines or split your product payment into multiple payments to increase the price of your product. But use this argument only in extreme cases and very carefully, only with proven clients. And, of course, it is necessary to have complete information about the state of your consumer's business before giving him goods on credit or in installments. The conclusion is obvious, the more information you have about your consumer and his suppliers, the more successfully you will be able to negotiate.

As your business develops, you will have to constantly return to questions, service, etc., i.e. constantly negotiate with consumers. And here your reputation as a reliable partner is very important. And if it's flawless, many consumers will prefer to work with you over your competitors, even if they offer slightly better price terms.

How to negotiate with suppliers.

Second in number, and in importance, I consider negotiations with suppliers of materials and components for your small business. Small businesses and even their existence directly depend on their results. Sometimes no less than from negotiations with consumers.

In this case, you have to solve inverse problems - reduce the price of the goods supplied to you, regulate the delivery time, the quality of the goods supplied, etc. Even a slight discount in the price of materials supplied to your small business can bring him more income than a few days of work. When preparing for these negotiations, I advise you to check and obtain information about the suppliers of the materials you need. In addition, I recommend having information about as many suppliers as possible, i.e. get freedom of choice. In this case, it will be easier for you to negotiate on the issues you need.

Don't work with just one supplier. Depending on the size of your small business, choose what you think are the best two or three suppliers of the same material. This will, firstly, improve the regularity of deliveries, since not always the material you need is available from each of the suppliers, secondly, suppliers want to sell more of their goods, knowing your capabilities, they will understand that you are buying somewhere else and will try to give you better conditions.

Try to convince suppliers to deliver materials to your production. This will reduce the cost of transportation. In return, offer the supplier to order materials in advance, and not in emergency mode, so that he can schedule delivery of them to you. Try to set up negotiations with suppliers in your territory so that he can see your opportunities in buying materials or components from him, and also see that he is not alone with you.

An example from my own practice.

I often succeeded in the following, perhaps, from the point of view of ethics, not quite a beautiful trick. I invited one supplier to negotiate for a time when I should have received the same product from another. If this was not possible, for some reason, he tried to leave the received material in a conspicuous place by the time of the meeting so that he could immediately see it. Believe me, this makes an impression on suppliers, sometimes it allows you to significantly reduce the price of the goods supplied, and discipline deliveries. But all this can only happen if suppliers trust you. All your payments for the received goods must be made on time, without interruptions and delays.

In any case, when negotiating with suppliers, you must demonstrate knowledge of the materials and components received, their characteristics and quality. The supplier must understand in negotiations that you do not swim in these matters, and that he cannot slip you materials of lower quality at a higher price. On the contrary, point out to him all the inconsistencies in the quality of his materials and try to reduce the price at the same time.

And in conclusion of this article I want to give some advice on this topic.

1) Take the time to contact and negotiate with customers and suppliers. The time spent on these negotiations is of great benefit to your small business.

2) Do not delegate these negotiations, especially with new customers and suppliers, to other employees. Except, of course, business partners.

3) Do not try to squeeze the maximum concessions from your regular customers and suppliers in one round of negotiations. Gradually, you will achieve much better results.

4) Try to delve into the problems of your regular customers and suppliers. Make concessions to them that won't hurt your small business too much.

5) Build your relationship with regular customers and suppliers only as business partners. Offer to hold joint events to increase sales. Everyone will benefit from this.

6) One more piece of advice that, based on my experience, I want to give. Try to work with your customers (if that customer is outlet) in conjunction, i.e. do one thing. After all final goal both for you and for your consumer - to sell as many products as possible, to get maximum profit. More about it