What Suppliers Fear When Negotiating<\/h3><\/div><\/div><\/div>PurchTips edition #298<\/p>\n<\/div>
Are You Aware Of Supplier Fears In Negotiations?<\/h4><\/div><\/div><\/div>Fear. It’s a powerful emotion that prevents people from doing what they want or compelling them to do what they don’t want to do.<\/p>\n
As humans, your suppliers’ sales representatives have fears. Those fears come into play when they negotiate with you. And those fears can affect \u2013 positively or negatively \u2013 how effectively you negotiate with them.<\/p>\n
Here are four supplier negotiation fears and how they can impact your negotiations…<\/p>\n
Fear #1: Losing to a competitor.<\/strong>\u00a0Suppliers hate when potential clients choose a competitor over them. If you make suppliers aware that you are evaluating multiple options, they are more likely to be more aggressive with their pricing.<\/p>\nFear #2: Having your project canceled due to budget.<\/strong>\u00a0Organizations and projects usually have finite budgets. When some projects can’t be done within a certain budget, they are canceled. Sometimes, you can’t play the “I’m talking to other suppliers” card. In those situations, telling suppliers that aggressive pricing is necessary for the project budget to be approved can be an effective alternative.<\/p>\nFear #3: Failing to get their “foot in the door.”<\/strong>\u00a0Some sales organizations try so hard to land certain accounts. Often, spam filters, gatekeepers, and disinterested buyers make it hard for some suppliers to do business with certain organizations. So, when a desirable client contacts these suppliers, they worry about missing their chance to finally land the client. If it is difficult to get established as a new supplier for your organization, you might be able to use that to your negotiating advantage.<\/p>\nFear #4: Losing face.<\/strong>\u00a0When suppliers propose unreasonably high prices and later lower those prices dramatically, they worry about customers perceiving them as greedy and opportunistic. This fear can work against you in a negotiation. So, be careful how you describe an unacceptable price to the supplier who proposed it. Describing it too negatively like “a rip-off,” “price gouging,” etc. can make a supplier reluctant to prove you right.<\/p>\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>
PurchTips edition #298<\/p>\n<\/div>
Are You Aware Of Supplier Fears In Negotiations?<\/h4><\/div><\/div><\/div>Fear. It’s a powerful emotion that prevents people from doing what they want or compelling them to do what they don’t want to do.<\/p>\n
As humans, your suppliers’ sales representatives have fears. Those fears come into play when they negotiate with you. And those fears can affect \u2013 positively or negatively \u2013 how effectively you negotiate with them.<\/p>\n
Here are four supplier negotiation fears and how they can impact your negotiations…<\/p>\n
Fear #1: Losing to a competitor.<\/strong>\u00a0Suppliers hate when potential clients choose a competitor over them. If you make suppliers aware that you are evaluating multiple options, they are more likely to be more aggressive with their pricing.<\/p>\nFear #2: Having your project canceled due to budget.<\/strong>\u00a0Organizations and projects usually have finite budgets. When some projects can’t be done within a certain budget, they are canceled. Sometimes, you can’t play the “I’m talking to other suppliers” card. In those situations, telling suppliers that aggressive pricing is necessary for the project budget to be approved can be an effective alternative.<\/p>\nFear #3: Failing to get their “foot in the door.”<\/strong>\u00a0Some sales organizations try so hard to land certain accounts. Often, spam filters, gatekeepers, and disinterested buyers make it hard for some suppliers to do business with certain organizations. So, when a desirable client contacts these suppliers, they worry about missing their chance to finally land the client. If it is difficult to get established as a new supplier for your organization, you might be able to use that to your negotiating advantage.<\/p>\nFear #4: Losing face.<\/strong>\u00a0When suppliers propose unreasonably high prices and later lower those prices dramatically, they worry about customers perceiving them as greedy and opportunistic. This fear can work against you in a negotiation. So, be careful how you describe an unacceptable price to the supplier who proposed it. Describing it too negatively like “a rip-off,” “price gouging,” etc. can make a supplier reluctant to prove you right.<\/p>\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>
Fear. It’s a powerful emotion that prevents people from doing what they want or compelling them to do what they don’t want to do.<\/p>\n
As humans, your suppliers’ sales representatives have fears. Those fears come into play when they negotiate with you. And those fears can affect \u2013 positively or negatively \u2013 how effectively you negotiate with them.<\/p>\n
Here are four supplier negotiation fears and how they can impact your negotiations…<\/p>\n
Fear #1: Losing to a competitor.<\/strong>\u00a0Suppliers hate when potential clients choose a competitor over them. If you make suppliers aware that you are evaluating multiple options, they are more likely to be more aggressive with their pricing.<\/p>\n Fear #2: Having your project canceled due to budget.<\/strong>\u00a0Organizations and projects usually have finite budgets. When some projects can’t be done within a certain budget, they are canceled. Sometimes, you can’t play the “I’m talking to other suppliers” card. In those situations, telling suppliers that aggressive pricing is necessary for the project budget to be approved can be an effective alternative.<\/p>\n Fear #3: Failing to get their “foot in the door.”<\/strong>\u00a0Some sales organizations try so hard to land certain accounts. Often, spam filters, gatekeepers, and disinterested buyers make it hard for some suppliers to do business with certain organizations. So, when a desirable client contacts these suppliers, they worry about missing their chance to finally land the client. If it is difficult to get established as a new supplier for your organization, you might be able to use that to your negotiating advantage.<\/p>\n Fear #4: Losing face.<\/strong>\u00a0When suppliers propose unreasonably high prices and later lower those prices dramatically, they worry about customers perceiving them as greedy and opportunistic. This fear can work against you in a negotiation. So, be careful how you describe an unacceptable price to the supplier who proposed it. Describing it too negatively like “a rip-off,” “price gouging,” etc. can make a supplier reluctant to prove you right.<\/p>\n<\/div><\/div><\/div><\/div><\/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> 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>Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
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