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Negotiating a Purchase
3. Your Negotiating Strategy
3.1 Develop your strategy for buying.
The details may only come into focus when you write it down.
- Decide on the overall approach you will adopt.
- Decide the type of deal you want and the priority you will give it.
- List your strengths and the ways you might use them in the negotiations.
- Plan how you will defend the weaker aspects of your position.
- Give a written copy of your strategy to anyone who is negotiating on your behalf.
3.2 Get the right negotiating team.
- Where possible, match the seniority and style of those you are negotiating with.
- Include the relevant specialists. For example, contract, commercial or production.
- Bring together complementary skills. For example, choose one team member for his or her ability to get on with people, and another to focus on the details.
- Use an agent to negotiate in areas outside your expertise. For example, when sourcing from overseas suppliers.
3.3 Aim for a deal that works for you, and keeps the seller happy (see 7).
- Be firm but fair. You may need to deal with this supplier again.
- Even if negotiations are going your way, keep drawing attention to the specific benefits for the other side.
3.4 Negotiate at the right time.
For example, renegotiate a tenancy when other tenants have moved out and the landlord needs you to stay, or negotiate the purchase of a new copier before your old one breaks down.
- Find out what time constraints affect the seller. For example, sales people's bonuses often depend on meeting quarterly quotas. You can use this type of information to help you get a better deal.
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