Negotiating a Purchase

1. Know What You Want

1.1 Decide how much you want the deal. For example, you may have a problem that you need the supplier's product to solve.

• Calculate how much money the product or service may save you in the long run.

1.2 Set your negotiating objectives.

• Define what you would see as ideal, expected and unacceptable prices.
• Decide how much time you are prepared to spend negotiating.
• Work out what your response will be to different proposals the supplier may make.
• If you are keen to buy regularly from this supplier, you need a deal that will last.

1.3 Decide which areas are negotiable.

• Cost out negotiable areas and consider the implications.
• Decide whether it is more important to you to get the price down or get added extras at the same price (see 5.3).