How to Get the Best Deal from Your Suppliers

How to Get the Best Deal from Your Suppliers

When it comes to your business, profit is everything. While a decrease in profit can lead to trying times, an increase can help your business to meet growth and financial targets. As a business, there are a number of steps you can take to increase profit margins, such as improving conversion rates and re-evaluating prices.

However, one of the most effective ways of boosting revenue is by negotiating with your suppliers and reducing the cost of your materials. But how can you be fair and get a good deal?

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Leverage Your Offers

One of the best ways to successfully talk price with a supplier is to ensure that your business has a useful negotiating tool. In this case, getting quotes from multiple suppliers is probably the most powerful tactic you can use. When using this method, talk to a minimum of three suppliers and explain to each that you will go with the merchant who can offer the most competitive deal. Although remember not to forget about quality.

Keep on Going

When trying to reduce your costs and increase your profits, one of the worst things you can do is accept the first offer you receive. A supplier will never offer their best price straight up, instead it requires some serious discussion. The key here is to keep talking and continue to negotiate. Before speaking to a supplier, develop a strategy and make sure you hold your nerve and stick to it when you start to haggle.

Sell Your Business

Not literally — you can breathe! But when you’re negotiating with a supplier like Clarence Jones Machinery, remember that you’re dealing with a business. Just like you, they want to increase their profits, orders, and loyal customer base, so sell yourself when pitching. Refer to the amount of orders you have made with them, or talk about the number of large orders you are projected to make in the future. Essentially, use an angle that shows how they will profit.

Consider Other Areas

If you’re struggling to haggle down prices, you could consider negotiating with your supplier in other areas. Other ways your business may benefit include: an increase in the length of warranty, larger discounts for bulk purchases, faster shipping times for the same price, or a reduction in the amount of deposit required. It could also be worth asking about discounts for early payment of invoices, or a longer period in which to pay for your order.

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