Winning Supplier Negotiation: Alexander Djerassi
Supplier negotiations are one of the most important aspects of a business. They play a huge role in how the functions of a company can grow. Business owners need to be able to win them, and that means being able to understand the supplier’s perspective and understanding their needs. If business leaders can find the right supplier, they can save themselves a lot of time and money. It can be difficult to make the right decisions when it comes to supplier selection, especially if one does not have a lot of experience with the business. However, it is not impossible. That’s why it’s important to read this guide as per Alexander Djerassi and learn how to win supplier negotiation.
Establish a rapport with suppliers
One of the most important things one can do to win supplier negotiation is to establish a good rapport with the suppliers. This means understanding their perspective and their needs. By doing this, a business owner will be able to better understand their demands and requirements. Excellent communication emanates from properly understanding the supplier’s requirement hence, ease in winning a negotiation. Simple steps to building rapport involve being attentive, approachable, responsive, and highly professional.
Understand supplier’s previous customers
A business owner can win supplier negotiations by understanding their previous customers. The clients will help the business owner understand the supplier’s needs and how they would feel about a certain product or service. It will also help the business person assess whether or not the supplier is a good fit for your business. By understanding the information, one can make better choices when it comes to supplier selection. An individual will also easily establish if they are in an advantageous position during the negotiation or not.
Reach out to more suppliers
When it comes to supplier selection, it is important to reach out to more suppliers. This will help a business owner get a better sense of what they offer and, as a result, make the best decision for the business. By reaching out to more suppliers, one will be able to build a better relationship with them and make sure to get the best possible deals. Additionally, by reaching out to more suppliers, a business person can become familiar with their products and services. The business person may need to bring counter offers from different suppliers at any one negotiation. Alexander Djerassi states that such a step will make the suppliers honest with their pricing and nature of services.
Understand the actual cost of the commodity to be supplied
One of the vital aspects of supplier selection is understanding the actual cost of the commodity to be supplied. This is because it will help a businessperson determine whether or not the supplier is a good fit for the business. One may not want to spend too much money on a supplier that can’t provide the goods they need. Failure to have such an understanding may lead to one receiving a product that is not up to their expectations. In addition, by understanding the cost of the desired commodity, a businessperson can make better decisions about who to choose as a supplier and avoid regrets down the road.
