free small business advice & information
Main Menu
Hot Links
Page 7 of 9
Negotiating a Purchase
6. Lowering the Price
6.1 Do not accept the supplier's first offer.
- Make a low counter-offer.
- Ask 'What can we add in at this price, to make it easier to sell to my boss?'
- Do not be tempted by offers of a long payment period.
- Beware of 'bargains'. Ask the supplier why the price is so low. Work out whether this is the real reason.
6.2 Undermine the asking price.
- Ask what-if questions. For example, 'What if you go bust and I have no-one to support the machinery?'
- Lower the price by focusing on features you do not need.
- Expose the total cost of ownership. Ask about expenses and consumables, service and repairs, including parts.
- Query the price by putting it into a wider context. For example, 'Is this reasonable when the market price is falling?'
6.3 Use your negotiating power to get what you want. For example, ask for discounts in return for making a larger order.
- In some industries, such as the building trade, prices are 15 per cent higher because trade buyers expect discounts.
Labels: Reduce Costs
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory