Negotiating with Vendors and Suppliers
Negotiating with Vendors and Suppliers can be a daunting prospect. But if you’re a parent, let’s face it anyone who has kids is a skilled negotiator. From the time they can talk the second most used word of a two-year-old is “NO”. We can all learn from that. As my son has gotten older, he has gotten even more creative with his negotiation skills. You’d be surprised at what that kid will do to get the absolute best deal.
Since I’ve been asked by more than one client how I negotiate with suppliers and vendors I thought I would share the lessons my son has taught me.
How to Negotiate with Vendors and Suppliers Like a Kid
Know the Person Behind the Product or Service (Build A Relationship)
My son knows me in and out. He knows when he’s pushed me past the point of no return. He says it’s because I get a crazy look in my eyes (also known as mom’s face). But really, it’s all about building relationships with people that will do you good In the long term. Building a relationship with your vendors and suppliers will help you get the best possible terms. Go ahead and ask them questions about their business, their family, and even their kids. If you’re not sure what to ask, try these 8 Ways to Improve Your Relationship with Your Suppliers.
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Kids Know Exactly What They Want (or Know Your Facts)
My son is brilliant he knows he can’t ask for everything so he’ll break it up in pieces but he always knows before he approaches me what exactly he wants to get for the engagement. When my son wanted an Xbox, he knew which make and model, what games he wanted, and all the accessories before he even approached me. He knows what it’s going to cost at each store, and he knows when it goes on sale. Don’t be afraid to do your research before you even talk to the Vendor. If you want to better your positions with a supplier, you can help your self by researching the equipment and supplies so you know what they cost your vendor. If you’re not sure where to start read this article on Market Research
Never Take the First Offer
Going back to the Xbox example when my son came to me, I offered to pay for half if he paid the other half. He came back with “I’ll pay a third and do some chores to make up the difference. (such a little shit). He has never taken the first offer. He always comes up with some creative ways to get what he wants for as little cash as he can get. (It kinda warms my cheap ass heart right up). Don’t negotiate from desperation and be prepared with several creative solutions that might be a better fit for you. The trick is to learn what your vendor may need from the sale. What’s the minimum he needs and what’s the maximum you can pay.
Always Have a Backup Plan
On occasion, I say no to my son for things that he wants but I don’t necessarily want to spend money on want to wait until a birthday or something comes up. For my son, if he can’t get a deal thru me, he’ll look to other sources. For example, he wanted to get some new named brand clothes. Since I rarely buy anything named brand or expensive for clothing (because he grows fast not because I don’t want to). He will ask if he can go to a consignment shop. He gets the name brands he wants, and I get the price I want. Win-win for all. Don’t be afraid to find other suppliers and vendors who might be able to give you a better deal. Feel free to get creative if your vendors won’t bend on price.
Free Fillable Accountable Expense Policy: Get our ” Sample Expense Policy and Calculator” that lets you craft an expense policy that saves you and your employees’ money.
Make it a Point to Find Out What Your Vendor Needs
When Evan wants really wants something, he’ll find out what he can do for me. He’ll offer to do dishes clean stuff work for me etc. When you’re in a service industry one of the areas I use to negotiate with potential clients is on the scope. Sometimes they just need a little bit of help so instead of the full monthly cost we talk about hourly training sessions or some teaching time.
Some of the things that can be negotiable for a vendor.
- Downpayment
- Shipping costs
- Bulk discounts
- Length of Assignment
- Scope of work
Don’t Be Afraid to Ask
One of the first things Evan seemed to have learned outright from the time he was small was to just start asking for what he wants. One of the first things you must get over in negotiations is just asking outright for what you want and what you need. (This could really be a life lesson). Too many times we are too embarrassed to just ask outright for a discount. You’d be shocked at how happy people are to give you what you want if only you’d ask.
Don’t Be Afraid to Walk Away
I offered my son what I thought was a good deal when it comes to paying for some of his after-school activities. He liked none of the options and let me know that in no uncertain that none of the options were for him. Though he ended up taking 1 as I gave him no choice. His willingness to walk away from the table gave him power. It may be hard especially if you’re in a long-time relationship but if they can’t satisfy your needs as a business owner sometimes you just need to find someone who can.
Consistent Patience Can Get You Places
One thing I’ve noticed about my son is that he is not afraid of taking his time for things he really wants. Take your time, negotiations can be ongoing and over several weeks. Take your time to make the decision.
Free Fillable Accountable Expense Policy: Get our ” Sample Expense Policy and Calculator” that lets you craft an expense policy that saves you and your employees’ money.
Putting it All Together
If you don’t have kids you probably can’t relate to this article however, the principles are the same. Just remember these simple lessons.
- Know the Person Behind the Product or Service (Build A Relationship)
- Kids Know Exactly What They Want (or Know Your Facts)
- Never Take the First Offer
- Always Have a Backup Plan
- Make it a Point to Find Out What Your Vendor Needs
- Don’t Be Afraid to Ask
- Don’t Be Afraid to Walk Away
- Consistent Patience Can Get You Places
I should also point out that negotiations with anyone including suppliers and vendors takes practice. I suggest starting with your kids 😉
