Guide

Negotiate the right deal with suppliers

Introduction

Negotiating the right deal with your suppliers doesn't necessarily mean focusing on the cheapest possible price. You may want to negotiate other factors such as delivery times, payment terms or the quality of the goods.

You may need to vary your approach for different negotiations. Factors to consider include who your supplier is, what alternatives you have and whether you want to do business with a particular supplier again.

Both sides should conclude a negotiation feeling comfortable and happy with the agreement. Negotiations can be unsuccessful if either side feels forced into a corner.

This guide explains how to set objectives when negotiating with suppliers. It describes how to develop a negotiation strategy, run check on potential candidates and negotiate price with a supplier.

Finally, it tells you how to draw up contracts for your purchases from suppliers.