Supplier talks in medium-sized companies - Five practical tips for your next negotiation
published on
12.11.2024
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Does it sound familiar? The salesperson on the other side of the table is a savvy professional and holds the reins of your conversation firmly in his hand. Especially in times of rising raw material prices and delivery bottlenecks, negotiations with suppliers and subcontractors can become very lengthy and tough.
However, regular discussions are an essential prerequisite for maintaining a good relationship with the supplier. Whether in face-to-face meetings, on the phone or via video conference: in addition to professional competence, it is above all communicative competence and the cultivation of relationships that are important in order to be able to represent one's own interests to the supplier in the long term.
Successful negotiations with suppliers require sensitivity and a great deal of experience. In addition to small talk and cultivating relationships, topics such as prices, delivery conditions or avoiding supply bottlenecks are the defining elements of such a discussion. You have to weigh up very carefully how much you can expect of your supplier and how much you want to accommodate him.
The goal of every supplier negotiation should be that you define goals together with your supplier and leave such a discussion as a partner. For this, however, it is essential that a corresponding negotiation is prepared professionally, especially on the customer's side. Carelessness in preparation quickly becomes a stumbling block when it comes to details in negotiations with suppliers.
ReadHERE our blog article on preparing for supplier meetings.
After the preparation phase, the actual interview is now on the agenda. Administrative matters, such as sending the agenda or the supplier's self-disclosure, have already been taken care of and you have intensively dealt with your personal goals for the meeting. But what do you have to bear in mind during the actual negotiation meeting? Below you will find a few helpful tips:
Especially in medium-sized businesses, the relationship between supplier and customer is usually designed for a long-term partnership. One does not have the time and resources to constantly seek out new suppliers and familiarise them with the company structures and needs. Therefore, it can be worthwhile to build up a certain familiarity with the salesperson on the other side of the table and to exchange a few words of small talk outside the actual negotiation. This introduction also sets the tone for the whole negotiation and takes some seriousness out of the situation.
However, it is also important to exercise a little caution here: Your counterpart makes dozens of sales calls every week and knows what a customer wants to hear. Keep an eye on your negotiation strategy and don't be impressed by a possible charm offensive.
It is one of the oldest rules of transformation in the world: The one who opens the conversation has the conversation in his hands from the first moment and can steer the negotiation in a certain direction. Don't allow salespeople to praise their products to the skies and distract from the real core issues. This method is common and should sensitise you for the price poker later on. Direct the negotiations straight to the essential questions and problems and show that your meticulous data evaluation has paid off!
Analytics with Tacto - Learn more about the topic
After you have opened the conversation with a short greeting, you can relax and work through your own agenda point by point. Of course, you can never predict exactly in which direction such a conversation will develop. But with your agenda, you have a little reminder in your pocket and can always steer the conversation back in the right direction if necessary.
As mentioned in our first blog post, a solid data evaluation is essential in the preparation of the supplier meeting. How high is your procurement volume? What is the delivery reliability? These and other questions should be clarified in advance.
Now it's time to bring the numbers to life. Be sure to back up your arguments with facts, figures and data (ZDF). Make it clear to your counterpart that you know at least as much as he does about his delivery times, procurement volume and price trends. This will put you in the best possible position to achieve your personally defined goals in the conversation.
Supplier relationships are usually designed to last for years or even decades. Over the years, there are several direct and indirect points of contact with a supplier. Regular negotiations are part of this.
For this reason, it is worth making a record of the course and outcome of what was said. If you have a detailed record of the negotiations, it also makes sense to have your counterpart sign it. In this way you can prevent a salesperson on the other side from having second thoughts and suddenly not remembering the conversation and his or her promises so clearly.
With all the tactics and data evaluation, one thing must not be forgotten: It's not just about you, but about achieving a situation that satisfies both parties. Successful buyers know: Even in very tough and contentious negotiations, they achieve their goals more easily if they treat their interlocutors politely and with respect.
Do not only pay attention to the price to be achieved in the current negotiation. If you squeeze your suppliers, you overlook the opportunities that a long-term partnership can offer. Give your counterpart the feeling at all times that he is not just a cost factor, but above all a partner. Through recurring negotiation talks and a solid buyer-supplier relationship, potential savings will automatically emerge at some point. And even better: sometimes even friendships!
We have compiled further questions and general assistance for preparing your next supplier meeting in a comprehensive checklist.
