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Negotiating a Purchase
5. Looking for Trade-offs
Do not indicate at the start that you are ready to concede. Make concessions only if they are necessary to help you get the things you want.
5.1 Make any concessions real, and insist on real trade-offs from the other side.
- Standard terms are sometimes dressed up as concessions. Expose them.
5.2 Offer concessions the supplier values.
- For example, agree long-term supply contracts or guarantee a minimum annual volume, in return for lower prices or other factors that are important to you.
5.3 Restructure the deal. If the supplier will not budge on price, ask for other improvements.
- Ask for better payment terms, delivery or extra features. Any of these may bring you better value than a slightly lower price.
- If appropriate, suggest paying with your product instead of cash.
5.4 Link the deal.
- For example, 'I will pay your price if it includes delivery' or 'I will drop my claim for the faulty goods you supplied last month if you give me a 5 per cent discount.'
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