There are many skills and traits that you possess as a business person. The best way to test your negotiating skills is to try it with your suppliers. When asked on who are the hardest business owners to deal with, most entrepreneurs provided a unanimous “suppliers” answer. Every entrepreneur needs a supplier or two to keep his business rolling. You can’t survive without a supplier if you are a manufacturer. Even the most successful companies can’t weather the storm without the help of a supplier that is why they are very essential ingredients to success. This is the reason why it is very important for you to have a good relationship by making good deals with them. Below are some of the smart approaches for both new and veteran entrepreneurs which are proven to be of great help when it comes to negotiating with suppliers.
- Value Mutual Gain – the mere fact that both of you are entrepreneurs requires you to value mutual gain. Basically, it means that you need to respect one another’s business by not taking advantage just to get the upper hand in business. You need to have a fair deal in order to make a good relationship with your supplier. Never try to open up transactions with your supplier by negotiating a deal that will favor you more. In short, keep every negotiation fair and square. You need a lot of honesty to build this kind of relationship.
- Do Your Homework – before even thinking about negotiating with your suppliers, do your homework first by doing some research. This will prevent any problem with the negotiation and the upcoming transactions with the other party. By doing your homework, our point is to check out the other suppliers along with their prices and their offers. In doing so, you’ll have some ideas on who should be the better supplier for you. You should have a list of suppliers with their prices and the quality of materials they are carrying. This will help to choose easily the best supplier for you.
- Help Them To Help You – this may sound quite corny but it actually helps a lot especially those who are really into building good relationships with their suppliers. The mere fact that you would like to help the other party succeed is a good idea itself. Helping them save money to help you with your business is a good way of dealing with your suppliers. Not only does this tackle the first tip which is the mutual gain, it also allows you to have a stronger bond which is more like business partners rather than just a mere supplier-client relationship. Think the same way as the other and this is healthy for both of you.
- Pay on Time – if you want to have smooth deals with your supplier, make sure that you pay your account on time. This will build trust and confidence which in return will help your company acquire its needs right on schedule.
Negotiating can be quite challenging especially if you are new in the world of business. It can also be fun and exciting once you learn how to deal with suppliers as it will help your company reach its goals much easier.