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How can you negotiate with vendors who are resistant to change?

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Negotiating with vendors who are resistant to change can be a frustrating and time-consuming process. You may encounter vendors who are reluctant to lower their prices, improve their quality, adapt to new technologies, or comply with your standards and policies. However, with the right skills and strategies, you can overcome their objections and reach a mutually beneficial agreement. Here are some tips to help you negotiate with vendors who are resistant to change.

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1 Prepare well

Before you enter a negotiation, you need to do your homework. Research the vendor's background, performance, reputation, and market position. Identify their strengths, weaknesses, opportunities, and threats. Understand their goals, needs, and motivations. Compare their offer with other alternatives and competitors. Establish your own objectives, priorities, and limits. Prepare a list of questions, arguments, and concessions. The more information and options you have, the more confident and persuasive you will be.

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Alan Wozniak, CEC, CIAQP, CIEC,

President/Founder of Business Health Matters / MarketWell Solutions | Newsweek Expert Author | Book Author | Investor | Results Driven Marketkng Agency
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Building trust is key. When negotiating with resistant vendors, it's important to approach the situation with empathy and understanding. Clearly communicate the benefits of change, address their concerns, and find common ground. Offer incentives or compromises to encourage their cooperation and emphasize the long-term value of the proposed changes. Ultimately, building trust and fostering open communication will help navigate the negotiation successfully.

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Stine Mangor Tornmark

Passionate about Privacy & Legal ? | CEO & Co-Founder | Experienced Legal Executive | Community Builder
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Most importantly is however to understand your company’s potential usage of the vendor’s service(s) and also how the vendor’s service actually works. If not, it will be very difficult to review the contract, SLAs and potential guidelines.

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2 Build rapport

Negotiation is not only about numbers and facts, but also about emotions and relationships. You need to build rapport with the vendor and show them respect, empathy, and trust. Use positive language, active listening, and open-ended questions. Acknowledge their concerns and challenges, and express appreciation for their efforts and achievements. Avoid criticizing, blaming, or threatening them. Instead, focus on finding common ground and shared interests. Rapport can help you reduce tension, increase cooperation, and create value.

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Jeff Dorr

SR Life Safety Systems Advisor at AROCK Technologies
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I like to take the time to allow a potential client to know my business, share what costs we encounter, open up regarding our pricing and being open to options regarding contractual issues. I also like to be open regarding staffing and capabilities issues we have. I find it brings a common ground that often many vendors don't for whatever reason want seen by their potential clients but they usually are suffering the same issues. Flexibility adds trust I feel.

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3 Communicate clearly

Communication is key to successful negotiation. You need to communicate clearly what you want, why you want it, and how you can get it. Use simple, direct, and assertive language. Avoid jargon, ambiguity, and exaggeration. Explain the benefits and rationale of your proposal, and provide evidence and examples to support it. Address the vendor's objections and questions, and counter them with facts and logic. Clarify any misunderstandings or assumptions, and confirm your understanding of their position.

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4 Be flexible

Negotiation is not a zero-sum game, where one party wins and the other loses. It is a collaborative process, where both parties can gain and give. You need to be flexible and willing to compromise on some issues, while maintaining your core interests and values. Identify the areas where you can be flexible, and the areas where you cannot. Offer concessions that are low-cost for you, but high-value for the vendor. Ask for reciprocal concessions that are high-value for you, but low-cost for the vendor. Seek win-win solutions that satisfy both parties.

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5 Follow up

Negotiation does not end when you reach an agreement. You need to follow up and ensure that the agreement is implemented and respected. Write a summary of the key points and terms of the agreement, and send it to the vendor for confirmation. Set a timeline and milestones for the delivery and evaluation of the products or services. Monitor the vendor's performance and compliance, and provide feedback and support. Resolve any issues or disputes promptly and professionally. Maintain regular communication and contact with the vendor, and build a long-term relationship .

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Jeff Dorr

SR Life Safety Systems Advisor at AROCK Technologies
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This is in my opinion is the standard for creating a relationship rather than just a sale. If you follow through and follow-up it builds long lasting trust. Follow up even when things don't always go well, fixing issues rather than running away goes a long way, remember you client is human too.

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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?

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Laura Frederick

CEO @ How to Contract | Helping lawyers and in-house teams get better at contracts and managing risk
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Be generous. Too many customers go in with a “squeeze till it hurts” approach. It’s a relentless drive for concessions rather than starting a mutually-beneficial partnership. I find most vendors are not resistant to change. They are resistant to change that is one way in your favor. Work with the vendor to learn how to make this deal and relationship successful for them. Ask what they need to make them look good to their Board or investors. Then get creative and find ways to deliver that value to the vendor. It’s less about per-item cost and more about minimizing risk to their profitability. By diving into their cost structure and pain points, you can find ways to make the deal better for them. And I bet they'll be flexible for that.

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How can you negotiate with vendors who are resistant to change?

1

2

3

4

5

6

1 Prepare well

2 Build rapport

3 Communicate clearly

4 Be flexible

5 Follow up

6 Here’s what else to consider

Contract Negotiation

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How can you negotiate with vendors who are resistant to change?

1

2

3

4

5

6

1 Prepare well

2 Build rapport

3 Communicate clearly

4 Be flexible

5 Follow up

6 Here’s what else to consider

Contract Negotiation

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