Negotiating with suppliers is like a ping pong game. Once you master a couple of key techniques you would be able to play the game very well. In this video, I’ll share 2 techniques to help you master the game. Enjoy.
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Hello. Welcome back to the Goodlife Warrior channel. I hope you’re doing well. As we’re all in business, we know the business world is never as transparent as we wish for. When the supplier tells you, “This is our best price.” Can you still negotiate? Of course, you can if you know-how. In this video, I’m going to share two very important things that you need to know when you negotiate with your supplier.
Yes. Negotiation can be difficult if you don’t know-how. Either you can come across to be too aggressive. You end up offending your supplier. In their mind is you’re ridiculous. You’re asking for a price that we couldn’t even produce the part. They end up don’t want to negotiate with you. Or you can be so timid, so you come across as to be too weak. In that case, the supplier will run you over. “If you want to know our best price, this is our best price.” No more negotiation. You see, negotiation is a game. It’s a skill-based game, just like ping-pong. You go back and forth with your supplier. If you are a good player in this game, not only you can negotiate, the bottom line is you can negotiate more profits for your business. Now, the bigger question is, how can you become a good player? Here are the two important things you need to know.
The first thing is information discovery.
In my course, information is gold in negotiation. If you want to be really good at negotiation, you have to be really good at information discovery. For example, when the supplier says, “This is our best price,” and you don’t know where to go from here, well, the first thing you need to ask yourself: “What information do I not know in order to continue to negotiate? Is she the decision-maker, or someone else is telling her this is their best price?” How long she has been working there anyway, size her up. “How about the cost drivers? Help me understand your cost, so I can be educated to understand this is your best price. If I order three times/10 times more, what I’m asking for, is this still your best price?”
You see when you hear the suppliers say, “This is my best price,” this is a dead-end statement. Don’t negotiate against the dead-end statement. Go around and try to discover more information. Once you get more information, you will find more entry points to continuously negotiate with the supplier.
The second thing is to create leverage.
Trust me on this. Whether you have a small budget or a big budget, as long as you are a buyer, you have leverage. Every supplier wants your money, whether it’s a little bit of money or it’s a lot of money. You do have leverage. Don’t ever think that you don’t have leverage. The thing is leverage doesn’t have to be real. You can’t pull leverage out of thin air. You can fabricate leverage.
For example, you can create a fake deadline to create a sense of urgency to have the supplier respond to you more, and so you can use that against them to negotiate back. You can leverage the packaging, even though you’re a small company. You can create packaging for your company so that you can sound very big and legit. When you negotiate with your suppliers, whether it’s a new supplier, you just want to have the best price so you can launch your product, or you are negotiating with your existing suppliers, you don’t want to pay for the pricing increases. But you know they’re going to keep asking for pricing increases. When you have trouble negotiating with your supplier, think about what information you do not know. Don’t go against this position. Go around. Discover more information to find more entry points. Also, think about what leverage you can create to negotiate with the supplier.
In the Negotiation Masterclass, I teach you so many different information discovery techniques, different how to create leverage techniques. There are so many ways you can create leverage. You cannot even believe it. The bottom line is negotiation is a game. Once you master the techniques, you can play this ping pong game with your supplier with a lot more confidence. The bottom line is you can get more profits for your business. That is the art and the beauty of negotiation. If you want to scale up your business, this is the one skill you need to master because there’s so much money on the table. If you don’t negotiate it, you will end up leaving those profits on the table.
I want to remind you, though, this is your last couple of days to get into the Sourcing Warriors Mastermind course. Once you get the Mastermind course, you will have a huge discount to get the Negotiation Masterclass. Literally, you’ll be paying for nothing. You want a sourcing mentor. I will be your mentor in the elite Facebook group. Whatever challenges you will have, it will be much easier for you to build and grow your business when you have support. Don’t miss the last chance to get a Mastermind. And so you can give a discount for Negotiation Masterclass. One gives you a complete sourcing system. Another one would teach you, specifically, how to negotiate more profits for your business.
Trust me. One small win in your sourcing, in your negotiation, will be more than paying for either one of the classes. I’m very excited about the Negotiation Masterclass. It’s going to go live on September 16th, Thursday. If you want to negotiate more profits, you need to get into the class right now.
Check out the link, the Sourcing Warrior Mastermind link, undertake Sourcing Warrior’s quiz to find out your sourcing IQ. Make it fun, learn something, have a great day. I’ll see you in the next episode.