While bringing in customers is essential for your small business, controlling your costs is also key to keeping your doors open. In order to do this, you need to master the art of negotiating with suppliers to in order to keep costs down.
CBS Business Consultants share some tips on supplier negotiations that can apply to any business. Let’s take a look at how to save you more money.
There is a myriad of ways to structure your relationships with suppliers. Some businesses receive everything from cleaning products to other items from a single supplier. Others have one main supplier and a few supplementary ones, and some just rely on a few local suppliers for different things.
Suppliers tend to have a variety of retailers to choose from. As a result, you need to be very specific about what each one offers and what you need from them. You don’t want to end up overpaying for an item or receiving a subpar product.
One simple and easy way to get a better price for your orders is to request fewer deliveries. For example, if you order 100 units and have them delivered once per week, it’s going to cost the supplier significantly less money.
In order to negotiate effectively, you need a partner who’s easy to work with. After a few interactions, you should see how well the person adjusts your order details and help you get the best detail possible.
Having a strong relationship with a reliable sales rep can be unbelievably valuable. They can serve as a trustworthy partner for your business.
While this is a fairly simple suggestion, it’s an absolutely critical part of any negotiating process that sometimes gets forgotten.
You must acknowledge the fact that you simply can’t get a better price unless you ask for it. If you don’t ask, you don’t get.
Negotiating prices with suppliers can be a particularly tricky part of running any business. If you don’t have prior experience, it can help a lot to partner with a consultant or service that can walk you through the negotiations. Having this type of assistance can sometimes save you around 6 or 7 percent on your orders. Over time, these savings can really add up.