When sourcing products, getting the best possible price is key to protecting your margins. But successful negotiation requires preparation and strategy.
Start by identifying more than one supplier you’re willing to work with. This gives you leverage—if one supplier won’t meet your terms, you’re not stuck. It also makes it easier to negotiate without fear of losing your only option.
Before entering a negotiation, define the maximum price you’re willing to pay. Be ready to walk away if the supplier can’t meet that target. A clear boundary helps you stay focused and avoid emotional decisions.
During the discussion, always ask:
“What quantity would I need to order to get your absolute best price?”
This helps you understand their pricing structure and plan future orders more efficiently.
In some cases, you might not be able to get your ideal price right away. If that’s the case, consider starting with a slightly higher cost—as long as you have a clear path to lower pricing on future, larger orders. It’s a trade-off, but one that can lead to better long-term deals.
Being professional, firm, and data-driven in your negotiation process gives you the best chance of securing favorable terms.
When sourcing products, getting the best possible price is key to protecting your margins. But successful negotiation requires preparation and strategy.
Start by identifying more than one supplier you’re willing to work with. This gives you leverage—if one supplier won’t meet your terms, you’re not stuck. It also makes it easier to negotiate without fear of losing your only option.
Before entering a negotiation, define the maximum price you’re willing to pay. Be ready to walk away if the supplier can’t meet that target. A clear boundary helps you stay focused and avoid emotional decisions.
During the discussion, always ask:
“What quantity would I need to order to get your absolute best price?”
This helps you understand their pricing structure and plan future orders more efficiently.
In some cases, you might not be able to get your ideal price right away. If that’s the case, consider starting with a slightly higher cost—as long as you have a clear path to lower pricing on future, larger orders. It’s a trade-off, but one that can lead to better long-term deals.
Being professional, firm, and data-driven in your negotiation process gives you the best chance of securing favorable terms.
