Negotiating and Influencing Prices with Suppliers

Expert strategies to influence and negotiate the best prices with your suppliers:\n

    • Know the difference between your bid price and buy price.\n
        • 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.
    • Decrease their risk & increase sales volume\n
        • Will they do long term contracts?
        • Mention foreseeable repeatability, if you win this project, will it lead to more from this GC or Builder?
    • Relationship Building\n
        •  Be professional and responsive.
    • Customer Loyalty\n
        • Do they think you’re just shopping around for the best number?
    • Prompt Payment\n
        • 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
    • Offer referrals\n
        • You will help spread the word about their great service and product availability

\nThe supplier isn’t the only who should benefit from your relationship – ask what’s in it for you?\n

    • What are their delivery times & rates?
    • Discounts? Is the pricing ever based on volume?
    • Difference between price flexibility for low margin & high margin items?
    • How long will a pricing offer stand? What if the job gets delayed?
    • What’s their backorder percentage?
    • Return policy for damaged product?
    • How quickly can they get pricing back to you? (they obviously don’t want to be shopped either)
    • Can you leverage competitor price matching?
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