You’re about to negotiate with a vendor. What do you need to know?

1 Know your goals

Before you approach a vendor, you need to have a clear idea of what you want to achieve from the negotiation. What are your priorities, expectations, and constraints? What are the benefits and risks of working with this vendor? How will you measure the success of the deal? Having a clear vision of your goals will help you focus on the most important aspects of the negotiation and avoid getting distracted by irrelevant details.

2 Research the vendor

You also need to know as much as possible about the vendor you are negotiating with. What are their strengths, weaknesses, opportunities, and threats? What are their motivations, values, and interests? How do they operate, communicate, and make decisions? What are their past performance, reputation, and feedback? Researching the vendor will help you understand their perspective, anticipate their needs, and identify potential areas of agreement or conflict.

3 Plan your strategy

Once you have a clear understanding of your goals and the vendor's situation, you need to plan your negotiation strategy. How will you approach the vendor, initiate the conversation, and build rapport? What are your opening offer, target range, and walk-away point? What are your best alternatives to a negotiated agreement (BATNA)? How will you handle objections, questions, and counteroffers? What are your concessions, trade-offs, and incentives? Planning your strategy will help you navigate the negotiation process with confidence and flexibility.

4 Communicate effectively

During the negotiation, you need to communicate effectively with the vendor. You need to listen actively, ask open-ended questions, and clarify any misunderstandings. You need to express your needs, concerns, and preferences clearly, respectfully, and assertively. You need to use positive language, body language, and tone of voice. You need to avoid emotional reactions, personal attacks, and assumptions. Communicating effectively will help you create a positive atmosphere, establish trust, and resolve issues.

5 Manage the relationship

After the negotiation, you need to manage the relationship with the vendor. You need to confirm the agreement in writing, review the terms and conditions, and monitor the delivery and performance. You need to provide feedback, recognition, and support. You need to address any problems, changes, or disputes promptly and professionally. You need to maintain regular contact, communication, and collaboration. Managing the relationship will help you ensure the satisfaction and success of both parties.

6 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?