As you’ve established your business over the years, you’ve made several useful contacts. You’ve been dealing with the same vendor for some time now and think it’s time to negotiate a new deal.
Business negotiations are rarely easy, and both sides may not have the same vision. What’s the best way to go about renegotiating with a long-term vendor?
Make a deal that benefits you both
Many vendors spend a lot of their time chasing down overdue payments. This actually ends up costing them quite a lot of money. If you can offer them an upfront payment, you can save them a lot of hassle. Just make sure that you negotiate a suitable discount for your business in return, though.
Come in with the data you need for leverage
There’s a fine line between offending your vendor and negotiating firmly with them. Make sure you let them know that you really don’t want to go elsewhere but might have no choice if they can’t come down in price. Gather some quotes from different suppliers that show a cheaper rate than you are currently on. There’s a good chance that the vendor will go out of their way to try and match them.
At the end of the day, long-term relationships benefit both your business and vendors. Make sure you stress this when renegotiating. The more you treat your vendors like partners in your business (and position your company to be seen as a partner in theirs), the easier it becomes to renegotiate.
As you take steps to expand your company and enter negotiations with vendors, it’s also important to think about legal protection. We help companies endure during difficult economic times and show them ways to thrive. Contact us for a consultation.