10 Tips for Negotiating with Your Suppliers

As the owner of a small business, you naturally look for ways to keep the bottom line healthy – after all, you can’t just raise your prices whenever you want more cash flow!

One of the best ways to control costs is with your vendors. Whether you’re buying the best porgy for the restaurant or need 500 units of Fimo for your art supply store, you want the best possible prices and terms. The question is, how do you haggle without alienating your suppliers? Read on.

1. Know the Numbers
If you know what it costs your supplier to make the product, or at least the average industry costs, you’ll know how much room you truly have to negotiate.

2. Know Your Own Business
There’s more to getting a great deal with a vendor than price; some industries, like the restaurant business, place a huge priority on a courier services in Toronto‘s on-time delivery while others can buy in bulk and get big volume discounts in exchange for the willingness to warehouse.

3. Dare to Compare
Don’t talk to only one supplier! Talk to their customers, too, and don’t be afraid to share the terms and conditions you have learned of.

4. Take Your Time
Don’t agree to anything before you’ve had time to carefully go over the contract.

5. Build a Rapport
Entrepreneurs are often so focused on their clients that they neglect to build a rapport with their suppliers, but if there’s anyone you should have great communication, trust and credibility with, it’s the people who supply you.

6. Learn the Jargon
If you’re knowledgeable about the industry and know the basics of the supplier’s business model, you can advocate for yourself and gain their respect.

7. It’s Give and Take
Be willing to compromise and think creatively. Remember, the goal is to reach a mutually beneficial agreement, so if you’re willing to bend a bit and put down a higher deposit initially, for example, you might get a better price.

8. Ask
You don’t know if you don’t ask. Can you make a deal if you order more, or at a different time of the month? There are no stupid questions.

9. Nothing Lasts Forever
When your contract is up, renegotiate; many suppliers are willing to lock in terms or throw in perks if it means keeping your business. You can also take this opportunity to see if there are any dramatic changes to the industry – maybe vendors are now offering radically improved services. Conversely, if things aren’t going well for you, your current supplier might be willing to defer repayment or change the agreement if it means continuing to do business with you.

10.  Know When to Fold ‘Em
Be confident enough to walk away if your vendor is unwilling to negotiate at all. After all, if you’ve done your homework, you should have a Plan B and a Plan C all lined up.

If you’re looking to build a relationship with a courier, lets talk. Click the following link for a free quote.