How To Use A Negotiation Script
Are You Creating Scripts For Your Big Negotiations?
PurchTips Edition #374
You should go into every supplier negotiation with a script covering key concessions you are seeking. Use a negotiation script to predict supplier objections, then develop responses to convince your supplier to drop those objections. Here is a sample script for negotiating a lower price with a supplier. Use it as-is or create your own script based on this example!
Supplier: “We are offering the best price that we can.”
You: “If that’s the case, would you be willing to include a Most Favored Nations clause in the contract, stating that we will always receive the lowest price offered to any of your customers?”
Supplier: “No. We can’t do that.”
You: “Well, that tells me that you are offering a lower price to another customer, which means that there’s room for our price to be lowered. What is the lowest price that you offer to any of your customers?”
Supplier: “I can’t tell you. That’s confidential between us and the customer.”
You: “I understand. So, instead of telling me their price, simply tell me which of the following ranges it falls into compared to the latest price you offered me: 1-5% less, 6-10% less, 11-15% less, 16-20% less, or more than 20% less.”
Whatever range they answer becomes the target you should aim to match or beat. Challenge any reason that the supplier gives for providing a lower price to another customer. And continue to push for that Most Favored Nations clause – it can provide you a contractual guarantee that your price will be and remain low!
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Copyright 2017. 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 Charles Dominick, SPSM, SPSM2, SPSM3
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