When it comes to growing a business, one of the most important things to consider is how much money you spend versus how much money you’re making. Sure, many businesses don’t make a single cent of profit for years because they’re reinvesting all of their profits back into the business. But you should still be trying to optimize the way you spend your money. This usually means cutting costs where possible and squeezing out as much value from your services as possible. However, there is another important factor to consider; negotiation.
While you can negotiate with any client or business to reduce your expenses, vendors are usually very open to discussing their prices. So let’s take a look at five easy ways to help you negotiate better prices with vendors while still maintaining a healthy relationship.
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Get quotes from multiple different vendors
One of the best ways to negotiate with vendors is to seek quotes from different companies. You can then use this as a way of saying “I can get this service cheaper” which puts a bit more pressure on the business to give you a better deal. If they’re confident that they can offer a better service, then they might be firm about sticking with their prices. However, if they’re willing to budge, then it shows that you’ve got them in your grasp and can negotiate better prices.
Understand exactly what you want from each vendor
Before you try to negotiate with a vendor, you need to understand exactly what you need in the volumes that you’re looking for. For instance, if you’re looking for adhesive spray glue then you need to understand the exact specification that you want and also how much you’re looking for. When negotiating, it’s easy to forget how much you actually need because you might be offered a really low price for twice or thrice the amount of volume which you might never use.
Be polite and courteous whenever you get in contact
Being polite over the phone or in emails can help create a professional impression of your business. This makes it a lot easier to negotiate with another business and sets a great first impression that will carry through into the future.
When suggesting prices, keep your communication as clear as possible
Communication can be blurry when you’re suggesting prices. You might be offering various proposals and getting back offers with different volumes. Keep communications as clear as possible and don’t hesitate to use a spreadsheet or something similar to keep track of all the offers that are going back and forth.
Establish yourself as a reliable repeat client
Lastly, make sure you try and establish yourself as a repeat client. Businesses will be more willing to give you a better deal if you prove to them that you can offer repeat business over a long period of time. This is a great way to keep your business costs manageable if you plan to keep your company operational for a long time.