Improve Your Negotiating Skills: How to Get the Most from Suppliers

When you’re running a business, especially if it’s an import-export business, there are various skills that you need to hone to succeed. One particular skill that you need to improve is your negotiating skill. Your business will either fail or succeed, depending on how well you negotiate. Besides, when you’re running a business, you’re always negotiating even when you’re trying to look for a shipping container shed to store your products under. When you’re dealing with suppliers, your negotiating skill will be put to the test because their main agenda is to sell at the highest price, while yours is to buy at the lowest. When you’re dealing with suppliers, try to remember these:

Let them know they’ll profit more from partnering with you

What most suppliers want to hear is that they’ll be able to sell more of their products in the years to come. If you’re going to build a long-lasting partnership with your supplier, let them know that they’ll be able to sell more of their products through you than other sellers. But how do you do this if you’re just starting out? You can convince them by showing them your sales projection plan for the year and the next. In this situation, you need to be creative and logical at the same time because you can’t convince any supplier that you’ll be increasing their profits just by promising them that you’ll do your best. They need a believable marketing strategy for them to put their trust in you.

Canvass other suppliers

When you’re looking for products to sell and you need a supplier, you don’t talk to one supplier only. You need to canvass other suppliers and find some that provide the best prices with the best products. Obviously, you won’t find a supplier that has both all the time. Some suppliers either have just the best price or just the best products, so you have to figure out which to choose. Also, by canvassing other suppliers, you can use the details of the prices you get from each of them and tell them about the other’s price range. As a result, they’ll be forced to compete against each other for your account. You can even ask them to bid to make things easier for you.

Give bigger deposits in exchange for bigger discounts

This one is common practice among salespeople. To secure a supplier’s account, a person will promise to give larger deposits in exchange for larger discounts. You might be forced to stretch your budget at first due to the large deposit, but it will be much more rewarding for you in the long run because you’ll be getting discounts for each purchase.

Flaunt the idea of considering a sole supplier

If you find a supplier that gives you a good price and is quick to accommodate your requests, try flaunting the idea that they’ll be your sole supplier and that you might get the best prices from them. When you’re dealing with suppliers, always remember that you have the upper hand. Even if you need their products, you can always find someone to give you the products that you need with the prices you like. In a way, they need you more than you need them, and you should always let them know that.