{"id":3121,"date":"2011-09-06T16:53:00","date_gmt":"2011-09-06T16:53:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2011\/09\/06\/your-suppliers-negotiating-strategy-know-it-beat-it\/"},"modified":"2021-07-06T07:26:00","modified_gmt":"2021-07-06T11:26:00","slug":"your-suppliers-negotiating-strategy","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/","title":{"rendered":"Your Supplier&#8217;s Negotiating Strategy:  Know It, Beat It"},"content":{"rendered":"<p>I hope that you have enjoyed the article \u201c<span style=\"font-size: 100%\">Defeating A Supplier\u2019s Negotiating Strategy.\u201d<\/span><\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>In the article, I gave a couple of examples of suppliers\u2019 negotiating strategies and how they could be identified and countered. I\u2019ll use this blog post to describe one more strategy.<\/p>\n<p>I call this negotiating strategy \u201ctaking the sauce off of the pizza.\u201d While everyone\u2019s favorite pizza toppings vary \u2013 and some people don\u2019t like any toppings, including the cheese \u2013 most of us expect at least sauce on our pizza.<\/p>\n<p>New suppliers will sometimes try to unseat an incumbent based on the promise of a lower price. How do they achieve such a lower price? They strip components or attributes of the product or service away.<\/p>\n<p>Sometimes, this is a good thing. It\u2019s like value analysis: if a component or attribute of a product or service isn\u2019t adding any value, then it should be eliminated and it\u2019s cost taken out.<\/p>\n<p>However, with these types of situations, you have to recognize when a new supplier\u2019s proposal is stripping value along with cost. Going back to the pizza analogy, you may be able to have a meal that beats back your hunger if you have sauceless pizza, but are you sacrificing satisfaction by foregoing an important ingredient like sauce just to save a little bit of money?<\/p>\n<p>If you are sacrificing satisfaction, then it may be worth spending more. You really have to scrutinize new suppliers\u2019 proposals, identify how lower cost is possible, determine whether there is a potential sacrifice to be made, and decide whether any sacrifice is worth the cost savings.<\/p>\n<p>Coincidentally or not, it\u2019s lunch time\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I hope that you have enjoyed the article \u201cDefeating A [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Your Supplier&#039;s Negotiating Strategy: Know It, Beat It - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your Supplier&#039;s Negotiating Strategy: Know It, Beat It - Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"og:description\" content=\"I hope that you have enjoyed the article \u201cDefeating A [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-09-06T16:53:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-06T11:26:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-110.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Your Supplier&#8217;s Negotiating Strategy: Know It, Beat It\",\"datePublished\":\"2011-09-06T16:53:00+00:00\",\"dateModified\":\"2021-07-06T11:26:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\"},\"wordCount\":298,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Procurement\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/your-suppliers-negotiating-strategy\/\",\"name\":\"Your Supplier's Negotiating Strategy: Know It, Beat It - 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