Negotiating a Purchase

How to Negotiate a Good Value Purchase From a Supplier

How to Negotiate a Good Value Purchase From a Supplier

The process of purchasing from a supplier can be a complex one. Especially if you are dealing with a supplier for the first time, it can be difficult to know what a good deal looks like, putting you at a disadvantage in negotiations. This article will help you with the all-important process of negotiating with a supplier. We cover how to work out your respective bargaining positions, then move on to how you can put together a clear strategy for getting the best deal. Finally, you will learn how to ensure the resulting contract reflects what you agreed, and how to build relationships with suppliers going forward. How do I work out what I want from the deal? If you are very clear on your objectives, you will be in a much stronger position during the negotiating process. To set your objective... »

How to Keep Your Purchasing Costs Down

How to Keep Your Purchasing Costs Down

The process of purchasing from suppliers will be a huge part of almost any business – representing one of your most significant costs. Any reduction in purchasing costs can have an extremely positive knock-on effect on other areas of your business – developing a lean, smart approach will almost certainly be more effective than focusing on profits. This article looks at how you can develop an effective purchasing strategy. We cover how to use a product specification to work out exactly what you need, how to choose, negotiate and build relationships with suppliers, how to keep stock costs down, and more. What should be my overall approach to purchasing? To ensure you purchase smartly, you need to put a number of things at the core of your business’ activity. In particular, it is essential yo... »

Deal or No Deal: UK SMEs Shun Negotiations

A third of small business owners and managers do not see themselves as naturally strong negotiators, according to a survey of 1,000 small businesses by T-Mobile. In determining the factors holding them back from negotiating, the survey identified lack of time, a belief that negotiating won’t make any difference and other business priorities as key reasons. One in ten (10%) of those surveyed only try to negotiate when they are having cash flow problems. Over a third of small business leaders expect suppliers to quote an unreasonably high first price and 71% of small business leaders believe suppliers often offer better deals to large enterprises. However, many are not negotiating with their suppliers to try and secure the best deals. Indeed, 63% of those surveyed have walked away from... »