50 Shades of an Aggressive Buyer

1. A Buyer must be a good Actor. Good communication skills should come naturally to him.
2. He must have a penchant of having the last word in each discussion.
3. The Buyer must do a thorough home work and know his subject very well. Even though sometimes he may not be well prepared or does not understand the project or subject well, but through his actions and by using certain key words he must give an impression to the Seller that he knows everything.
4. The Buyer must portray an image to the Seller in which he feels proud to be associated with him and dealing with the Buyer’s organization.
5. The Seller must be made aware how privileged he is when he is chosen for supply of material. The Seller must be made to feel that he has an edge over other players in the market.
6. The Buyer should be expert in understanding the body language.
7. Do not show any sympathy to a supplier, but keep telling him that he is a partner.
8. During the course of discussion a vendor must feel that the Buyer is doing him a favor by placing an order on him, However, this is just a feeling, the Buyer is making sure that his company’s interests are protected.
9. While entering a tough negotiation, consider the Vendor as an Enemy. Hardcore negotiations are like war and unless extreme feelings are warranted.
10. Always pit two suppliers against each other, Never work with a single supplier. The vendor may become complacent and you may become over dependent on him.
11. Keep asking for more and more till the supplier gets irritated and gives in.
12. Ask a lot of questions and pretend to be dumb and fool him intelligently.
13. Water his Ego and nurture it so that the vendor feels that you are his confidante.
14. Even though the new product presented by the vendor is brilliant, do not give an impression that you are too much impressed. Try to find some faults in it to increase your bargaining power.
15. During course of time a Buyer needs to gather maximum information about the personality of the vendor, his likes and dislikes, his very small habits, his political and personal preferences, tracking his activities in social media so as to discover his weaknesses and use it against him at an appropriate time.
16. Always reject his first offer and appear dissatisfied with each revision until the vendor begs and gives his best margin and best in class negotiated offer.
17. Always tell the vendor that he is capable of doing much better than what he has already committed.
18. Think of an atrocious counter offer which will baffle the vendor and he is taken aback and keep asking for more until the vendor stops giving.
19. While conceding or always be subordinate to someone else who is a decision maker and consider all salesmen have control on their boss who can give a greater discount on the recommendation of the Salesman.
20. Never allow the supplier to question any of your motives, rationale behind asking for a particular discount and requirements.
21. When a vendor gives in to the Buyer’s demand easily, do not accept it immediately and buy some time to think whether the counter offer made to the seller was correct or not and if the same needs any correction.
22. Do not follow First mover Policy, never make a unilateral concession, Open your cards only when you are sure of what you are going to get. Always ask something in return before conceding an inch of your ground.
23. The courtesy visits of vendor are never courtesy visits, there is always a motive behind the same. When a vendor comes asking, know that they have something to give.
24. Remember that when a supplier does not make a first offer, he is waiting to get some hints of Buyer’s expectations and hoping that he does not ask something in return.
25. Find out the person who has actually made the proposal as he is the one who actually knows in and out of the offer and is aware of the exact margins and the areas where there is a scope of reduction.
26. Use the time of a knowledgeable salesman who is more organized to understand the structuring of the offer to explore those unorganized vendors who are afraid of losing the business or are extra keen to get the business at any cost.
27. Never hesitate to use arguments even if they are absurd and keep on pressing your points till the supplier gets frustrated and agrees.
28. Extend the discussions to maximum possible time, Remember that most of the conditions are met at the final stages of discussions. In the end, the vendors are afraid to lose the order.
29. Always convince vendor to give something extra, then it can be free transportation, free service or free training.
30. Calculate the total quantum of business in the year and offer him higher than that volume in order to get the maximum discount.
31. Take immediate commitments from the sellers and bind them with an agreement.
32. Try to destabilize the vendor by requesting him impossible things and threaten to break the negotiation at any moment.
33. Let the vendors wait for negotiation, Make an appointment and do not show up citing irrelevant reasons.
34. Have another competitor pass in front of him.
35. Make the vendor insecure by talking to his competitor in front of him in a very friendly way making him believe that you are very comfortable with the competitor and may give the offer to him.
36. Give the vendors less time to decide. Always carry a Calculator with you and constantly do the calculation and shake your head in dismay whenever he gives a revised offer. Make false gestures till the time vendor gives in.
37. Ultimately what matters is “Reduction” or discount and it can be in any form like Bonus, Free promotion, freight & Sales tax inclusive, discounts in next purchase.
38. Avoid Stand-off at any cost. The line of communication must always be on and never let any Impasse in a negotiation drop. For a Buyer this is the worst thing.
39. If a supplier delays to give an answer, you can go and tell him that you have placed the order on his competitor. Make him feel guilty that only because of his delay or tough stance he has lost the order. This will ensure that he is on his toes next time and will also not delay and give a better offer.
40. Always buy products that you can use and are needed by you. The vendor on his side will try to push a product or services which are in excess or in which he has high margins.
41. Most importantly, buy products that give profitability or the products which increase the efficiency and productivity.
42. Avoid those suppliers who are over smart and read more information in Buyer’s office. The more informed they are the better for a Buyer.
43. Whether a vendor is young or old, new or experienced, remember that old and experienced think that they know everything, and young and new are inexperienced
44. If a vendor arrives with a superior, ask for more documents, more participation in promotions, threaten to throw them out, the boss will not want to lose the order in front of the salesman
45. Whenever the vendor has offered better terms to the other company or has agreed to lesser rates ask him for the same conditions even if you do not offer the same level of business
46. Never forget the golden rule of a good buyer:“don’t waste time with the professional sales person. Invest your time with the unprepared ones.
47. Never be afraid of big brands (behind a big brand you may well find an unprepared salesman who only counts on his brand). Invest your time with salesmen who never make calculations, who give in easy, who want to get in, or who are afraid to lose the business.
48. Ethics are very important. A buyer must maintain very high ethical and moral standards for himself and his Team.
49. At no point does the vendor should have the reason to overrule the Buyer or speak in a loud voice or undermine the Buyer’s authority.
50. Go ahead squeeze them they are at your mercy you have the power use it.

Vinay Srivastava is a procurement professional of almost 21 years of domain knowledge and experience. He is currently working as Head - Procurement, Real Estate and Administration. The views expressed above are his own and are not published in his official capacity. You can follow him on Twitter @purecurement and mail him on [email protected]