I hope that you have enjoyed the article “7 Steps For Negotiating Optional Procurements.”

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In that article, I shared the first five of those seven steps.  Here are the remaining two steps…

6.     Offer to settle at an amount up to your organization’s maximum.  If you haven’t reached an agreement with your supplier at this point, it will require some back-and-forth conversation to reach a price that is less than or equal to your organization’s maximum.  At this step, you may need to disclose your organization’s maximum.  If you reach agreement, you don’t need to move on to the final step.
 
7.     Revisit the maximum your organization is willing to pay.  If you have executed the preceding steps well, you have pretty much determined the neighborhood of the supplier’s lowest price.  If you haven’t settled, you need to confer with your internal customers and/or management to see if there is a willingness to raise its maximum to meet the supplier at or near its most recent offer.  If not, then you’ll simply need to forgo the procurement.  It was optional, remember?

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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