Expert strategies to influence and negotiate the best prices with your suppliers:\n
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- Know the difference between your bid price and buy price.\n
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- If you’re awarded a project, go back to the supplier and ask for the buy price. It is likely there will be more room to negotiate at this stage.
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- Know the difference between your bid price and buy price.\n
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- Decrease their risk & increase sales volume\n
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- Will they do long term contracts?
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- Mention foreseeable repeatability, if you win this project, will it lead to more from this GC or Builder?
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- Buy in bulk – learn more on our recent blog post here.
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- Decrease their risk & increase sales volume\n
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- Relationship Building\n
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- Be professional and responsive.
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- Relationship Building\n
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- Customer Loyalty\n
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- Do they think you’re just shopping around for the best number?
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- Customer Loyalty\n
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- Prompt Payment\n
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- Can you offer credit references? I.e. A different supplier or industry partner verifying that you have a history of paying on time and continuing business loyalty
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- Prompt Payment\n
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- Offer referrals\n
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- You will help spread the word about their great service and product availability
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- Offer referrals\n
\nThe supplier isn’t the only who should benefit from your relationship – ask what’s in it for you?\n
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- What are their delivery times & rates?
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- Discounts? Is the pricing ever based on volume?
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- Difference between price flexibility for low margin & high margin items?
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- How long will a pricing offer stand? What if the job gets delayed?
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- What’s their backorder percentage?
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- Return policy for damaged product?
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- How quickly can they get pricing back to you? (they obviously don’t want to be shopped either)
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- Can you leverage competitor price matching?
