Negotiation, Ethics, & You

PurchTips - Edition # 72 April 5, 2005

By Charles Dominick, C.P.M., SPSM

How Do You Persuade Your Suppliers?

If you are like most purchasers, you are under pressure to generate lots of cost savings. Unfortunately, the pressure to boost the bottom line compels some less skilled purchasers to cross the ethical line. They use questionable techniques.

There are five common ethics-related profiles of purchasing negotiators. Which describes you?

The Liar - The Liar will tell any number of lies to a supplier to persuade that supplier to improve its terms. An example of a lie would be telling a supplier that another supplier has a price that is 10% lower when such a statement isn't true. UNETHICAL!

The Exaggerator - The Exaggerator might not tell an outright lie, but her words and behavior may be designed to trick a supplier into thinking that a larger quantity or longer term contract is to be expected. The Exaggerator's intent is to get a better price and not follow through with implied quantity or term commitments. UNETHICAL!

The Open Book - The Open Book will give a supplier information about competitors' proposals in order to persuade a supplier to offer a better deal. Of course, the competing suppliers expect their proposals to be kept confidential. UNETHICAL!

The Cheap Date - Despite the fact that he is engaged in a negotiation situation with the supplier, The Cheap Date will accept meals, entertainment, and/or gifts at the supplier's expense. Even if such acceptance does not actually influence The Cheap Date's decision-making, it creates the perception within The Cheap Date's organization that he is being "bought." UNETHICAL!

The Professional - The Professional considers ethics when negotiating. She knows the characteristics of the other four profiles and consciously avoids that type of behavior. And she does a great job of negotiating, too!

There are so many effective ethical negotiation techniques available. You should never have to resort to the practices of The Liar, The Exaggerator, The Open Book, or The Cheap Date to get the results you want.

Spotlight On Professional Development Opportunities

Is lack of negotiation expertise preventing you from saving tons of money on your purchases and becoming your company's hero? Great negotiation skills can help you save thousands, tens of thousands, or even millions of dollars for your company. Now, there is finally a way for you to become a master negotiator. And it is easy, quick, and fun! Next Level Purchasing's online class "Powerful Negotiation For Successful Buying" will give you the prowess of an expert negotiator. The real-world examples and interactive exercises will ensure that you understand and can apply both basic and advanced negotiation techniques, save your company money, and earn the respect and opportunities that you deserve!

To learn more about Powerful Negotiation For Successful Buying, please visit

www.NextLevelPurchasing.com

Let's Interact!

Want to share your thoughts on today's resource? So do I! Visit "Charles' Purchasing Certification Blog" to read additional thoughts from me and other purchasing professionals and to share your own comments. Simply visit http://www.NextLevelPurchasing.com/blog

FREE Offer!!!

Did you miss out on the opportunity to take the mini-course "Internet Reverse Auctions 101"? It's not too late! This mini-course is FREE to members of the Very Important Purchasers (VIP) Program!!!

Become a VIP and you'll get FREE access to other great educational material, too! This material also includes access to Web audio interviews with leaders in the supply management profession and two eBooks, each containing 25 great supply management articles!

As a VIP, you'll also have the chance to win a $50 gift certificate to the online retailer of your choice!