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.