How do you develop and maintain a vendor negotiation playbook or framework?

1 Define your objectives and criteria

The first step in developing a vendor negotiation playbook or framework is to define your objectives and criteria for the negotiation. What are you trying to achieve with the negotiation? What are your priorities and trade-offs? What are the minimum and maximum acceptable outcomes? How will you measure the success of the negotiation? These questions will help you establish a clear and realistic vision of what you want and need from the vendor, as well as the boundaries and constraints of the negotiation.

2 Identify and analyze your vendors

The next step is to identify and analyze your potential or existing vendors. Who are they? What are their strengths and weaknesses? What are their motivations and interests? How do they compare to each other and to the market? How do they perceive you and your business? These questions will help you gain a deeper understanding of your vendors, their capabilities, their expectations, and their bargaining power. This will enable you to tailor your negotiation strategy and tactics to each vendor and situation.

3 Develop your negotiation strategy and tactics

The third step is to develop your negotiation strategy and tactics based on your objectives, criteria, and vendor analysis. How will you approach the negotiation? What are your opening and target positions? What are your best alternative to a negotiated agreement (BATNA) and your reservation point? What are your value propositions and differentiators? What are your sources of leverage and influence? What are the potential risks and opportunities? How will you handle objections, concessions, and counteroffers? These questions will help you plan and prepare for the negotiation, as well as anticipate and respond to various scenarios and challenges.

4 Execute your negotiation plan

The fourth step is to execute your negotiation plan according to your strategy and tactics. How will you communicate and interact with the vendor? How will you build rapport and trust? How will you present and justify your proposals? How will you listen and ask questions? How will you deal with emotions and conflicts? How will you manage time and deadlines? How will you document and confirm agreements? These questions will help you conduct the negotiation in a professional and effective manner, as well as avoid common pitfalls and mistakes.

5 Evaluate your negotiation results

The fifth step is to evaluate your negotiation results against your objectives and criteria. How did the negotiation go? What did you achieve or not achieve? What were the strengths and weaknesses of your performance? What were the lessons learned and best practices? How can you improve your negotiation skills and outcomes? These questions will help you assess and reflect on the negotiation, as well as identify areas for improvement and development.

6 Maintain your vendor relationship

The sixth and final step is to maintain your vendor relationship after the negotiation. How will you implement and monitor the agreement? How will you manage changes and issues? How will you provide and receive feedback? How will you nurture and grow the relationship? How will you prepare for future negotiations? These questions will help you ensure that the agreement is fulfilled and that the relationship is mutually beneficial and sustainable.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?