Techniques and methods of negotiating prices

1. Price negotiation that cuts the bottom of the pot

In order to prevent suppliers from being at an advantage and grabbing huge profits, purchasing personnel have no choice but to agree that suppliers have "reasonable" profits. Otherwise, they will bargain at random and still give suppliers An opportunity to take advantage of. Therefore, it is usually the purchasing staff that requires suppliers to provide all cost information. For foreign goods, ask the general agent to provide all import documents to verify the true cost, and then add a reasonable profit as the purchase price.

2. When suppliers want to increase prices

Due to rapid changes in the environment, such as international turmoil and lack of raw materials (such as difficulty in obtaining rare metals such as cobalt and chromium) etc., often causing suppliers to take advantage of opportunities and gain an advantage, forming a seller's market and thereby increasing selling prices. At this time, the purchasing department has even greater responsibilities. If it can use its bargaining and negotiation skills, it can reach an agreement and negotiate on the seller's increased selling price to achieve the purpose of price reduction. During the negotiation process, purchasing personnel can negotiate the price directly or indirectly. The instructions are as follows:

(1) Direct price negotiation. Even in the face of inflation and rising prices, direct negotiation can still achieve the function of lowering prices. Here are four techniques you can use to negotiate.

① Faced with an increase in selling price, purchasers still order at the original price. When suppliers increase their selling prices, they are often unwilling to spend too much time on repeated price negotiations. Therefore, if they are existing customers, they can take advantage of this and demand that they continue to purchase at the original price.

②The purchasing staff directly explains the preset minimum price. During the negotiation process, purchasing personnel can directly state the preset reserve price, which can prompt the supplier to propose a price closer to the reserve price and then ask the other party to reduce the price.

③Don’t pull it down. This technique is a more radical bargaining method. Although this method may cause heated scenes, it is still a good bargaining technique under certain circumstances. This method is suitable for:

·When the purchasing staff does not want to When bargaining again.

·When the negotiation result has reached the upper price limit acceptable to the purchasing staff.

In the above two situations, the use of tough tactics of "no pushback" can often change the supplier's attitude and make concessions.

④Require an explanation of the reasons for increasing the selling price. Suppliers often increase selling prices due to reasons such as rising raw materials, higher wages, and thin profits. Procurement personnel should question any unreasonable price increases during price negotiations so that they can seize the opportunity to ask suppliers to reduce prices.