The Negotiation Before The Negotiation, Part III

What Can You Ask Your Supplier Before Negotiating?

PurchTips Edition #421

In the previous two editions of PurchTips, I introduced you to three things you need to know about your suppliers before beginning a negotiation with them. In this final installment of this series, I will give you specific questions you can ask of your suppliers to extract this information.

Again, I must emphasize that you should ask these questions in person, not in writing. Communicating in writing during a negotiation gives your supplier too much time to prepare answers intended to influence you rather than providing you with the truth! These questions are only examples to be used as a guide and are not mandatory. Use your own judgment to decide on questions – these ones or your own – that are appropriate for your specific situation.

  • What are your organization’s sales goals?
  • What is your organization’s #1 sales priority?
  • How is your sales performance measured?
  • What are the benefits of accomplishing your sales goal?
  • What are the consequences of failing to accomplish your sales goal?
  • If we discuss some terms, who decide if they are acceptable to your organization?
  • How will the details of our discussions reach the decision-maker?
  • How likely is it that we can pull the decision-maker into the discussion if we come across an opportunity that you are not authorized to agree to?
  • Are there any significant dates related to changes in your production capacity?
  • How often do you have to internally report your sales numbers?
  • Is there a particular date by which you’d like to get this deal done? Why?

NLPA Library: Looking for authoritative procurement templates, tools, webinars, and more?  Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in the NLPA Library.

Want a More Rewarding Procurement Career?

Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.

Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential.
Download the SPSM® Certification Info pack today to learn how to get started on your journey to a more rewarding procurement career!

Download

Need Better Performance From Your Procurement Team?


Are you a procurement leader whose team isn’t achieving the results you know are possible?
Maybe it’s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.

You need a performance improvement plan that’s easy to implement and quick to produce results. The NLPA can help.

Download our whitepaper “The Procurement Leader’s Guide To A More Successful Team.”You’ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.

Download


Copyright 2018. This article is the property of the Next Level Purchasing Association and may not be copied or republished in any form without the express written consent of the Next Level Purchasing Association. Click here to request republishing permission.

By David Millington, SPSM, SPSM2, SPSM3 - Director of Education (Next Level Purchasing Association)

This is the Web-based version of this article. Click here for the printer-friendly version.

final

Want to get more procurement articles by email for free?

Members of the NLPA get great articles just like this by email every two weeks. As a member, you will also get access to:

And the best part is that membership in the NLPA is Free! Sign up today and you'll receive a username and password that will allow you to access all of the benefits that come with the NLPA membership.