When Suppliers Request Concessions…Use These 3 Techniques To Avoid Giving Up Too Much<\/h1><\/div><\/div><\/div>We’d Love To Do Business With You, But…<\/h2><\/div><\/div><\/div>Ah, the scholars tout the benefits of “win-win” negotiation. They say negotiation involving give and take is essential to facilitate positive long-term relationships with our suppliers. And that’s true. But, let’s face it, in some situations “giving” means more money in your supplier’s coffers and less in yours. Obviously, you want to protect your organization’s money to the highest degree possible. So what do you do when a supplier asks for concessions during the course of a negotiation? Here are three techniques that you can use to avoid giving up too much.<\/p>\n
\n- Just Say No.<\/strong> If a supplier asks for a more favorable term in a contract, a higher price, or any other concession, start out by simply saying “no.” No justification is required. You would be surprised how many suppliers will just drop the issue then and there and not ask you again.<\/li>\n
- Introduce Consequences.<\/strong> If a supplier asks for a concession, test how important the concession is to the supplier by tactfully introducing consequences. For example, you could indicate that agreeing to a shorter warranty period would require the approval of management, technical staff, and others, and that such approvals would result in a long delay of formalizing the deal. If the delay in securing your business (the consequence) is unattractive to the supplier, it may drop its request for the concession.<\/li>\n
- Trade.<\/strong> If a supplier wants one term of an agreement changed to its benefit and you absolutely cannot convince the supplier to drop their request, try to only concede on the condition that you receive a concession of equal or greater value. For example, if a supplier cannot complete a service within 30 days as originally sought, attempt to obtain a more favorable fee structure to compensate for the concession that you have to give.<\/li>\n<\/ol>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
We’d Love To Do Business With You, But…<\/h2><\/div><\/div><\/div>Ah, the scholars tout the benefits of “win-win” negotiation. They say negotiation involving give and take is essential to facilitate positive long-term relationships with our suppliers. And that’s true. But, let’s face it, in some situations “giving” means more money in your supplier’s coffers and less in yours. Obviously, you want to protect your organization’s money to the highest degree possible. So what do you do when a supplier asks for concessions during the course of a negotiation? Here are three techniques that you can use to avoid giving up too much.<\/p>\n
\n- Just Say No.<\/strong> If a supplier asks for a more favorable term in a contract, a higher price, or any other concession, start out by simply saying “no.” No justification is required. You would be surprised how many suppliers will just drop the issue then and there and not ask you again.<\/li>\n
- Introduce Consequences.<\/strong> If a supplier asks for a concession, test how important the concession is to the supplier by tactfully introducing consequences. For example, you could indicate that agreeing to a shorter warranty period would require the approval of management, technical staff, and others, and that such approvals would result in a long delay of formalizing the deal. If the delay in securing your business (the consequence) is unattractive to the supplier, it may drop its request for the concession.<\/li>\n
- Trade.<\/strong> If a supplier wants one term of an agreement changed to its benefit and you absolutely cannot convince the supplier to drop their request, try to only concede on the condition that you receive a concession of equal or greater value. For example, if a supplier cannot complete a service within 30 days as originally sought, attempt to obtain a more favorable fee structure to compensate for the concession that you have to give.<\/li>\n<\/ol>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
Ah, the scholars tout the benefits of “win-win” negotiation. They say negotiation involving give and take is essential to facilitate positive long-term relationships with our suppliers. And that’s true. But, let’s face it, in some situations “giving” means more money in your supplier’s coffers and less in yours. Obviously, you want to protect your organization’s money to the highest degree possible. So what do you do when a supplier asks for concessions during the course of a negotiation? Here are three techniques that you can use to avoid giving up too much.<\/p>\n
- \n
- Just Say No.<\/strong> If a supplier asks for a more favorable term in a contract, a higher price, or any other concession, start out by simply saying “no.” No justification is required. You would be surprised how many suppliers will just drop the issue then and there and not ask you again.<\/li>\n
- Introduce Consequences.<\/strong> If a supplier asks for a concession, test how important the concession is to the supplier by tactfully introducing consequences. For example, you could indicate that agreeing to a shorter warranty period would require the approval of management, technical staff, and others, and that such approvals would result in a long delay of formalizing the deal. If the delay in securing your business (the consequence) is unattractive to the supplier, it may drop its request for the concession.<\/li>\n
- Trade.<\/strong> If a supplier wants one term of an agreement changed to its benefit and you absolutely cannot convince the supplier to drop their request, try to only concede on the condition that you receive a concession of equal or greater value. For example, if a supplier cannot complete a service within 30 days as originally sought, attempt to obtain a more favorable fee structure to compensate for the concession that you have to give.<\/li>\n<\/ol>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
- Introduce Consequences.<\/strong> If a supplier asks for a concession, test how important the concession is to the supplier by tactfully introducing consequences. For example, you could indicate that agreeing to a shorter warranty period would require the approval of management, technical staff, and others, and that such approvals would result in a long delay of formalizing the deal. If the delay in securing your business (the consequence) is unattractive to the supplier, it may drop its request for the concession.<\/li>\n
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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