The Power of Persuasion: Securing Discounts with Confidence
Stephen Ashcroft
Procurement Director | Strategic Focus | Transformation & Leadership I Corporate Real Estate | Major Programs | Airports
?? 25 May 2023 I'll be presenting a webinar in collaboration with CIPS Africa , aimed at enhancing procurement practitioners' negotiation skills and mastering the art of influencing. ??
?? Register here to secure your spot.
?? After inviting suggestions on the specific aspects of negotiation and influencing to cover during this 1-hour event, I received DMs focusing on one key topic: how to secure discounts.
So, I've put together this article to shed some light on the subject, complete with real-life examples (no names, no brands) to illustrate the points. ??
?? Research and Compare: Before engaging with potential suppliers for a new software solution, it's crucial to conduct thorough market research. By understanding the available options, pricing models, and features, you'll be well-equipped to compare multiple vendors and negotiate competitive pricing and favourable terms with the selected supplier.
?? Build a Relationship: When seeking a long-term supplier for conference/MICE services, take the initiative to build strong relationships. Attend industry conferences, networking events, and supplier/venue visits to establish rapport based on trust and mutual understanding. This will pave the way for negotiating better pricing and securing preferential treatment for future orders.
?? Bundle or Bulk Purchase: Planning to source a large quantity of office furniture for multiple locations? Leverage your bulk purchasing power to your advantage. Negotiate significant discounts and additional services like installation, maintenance, and extended warranties with a furniture supplier.
?? Point Out Limitations: During negotiations with a potential corporate vehicle rental supplier, if you notice specific limitations in their vehicle specifications that are crucial to your stakeholders, don't hesitate to bring them up. By highlighting these concerns and expressing the importance of addressing them, you can negotiate for custom modifications and a reduced price.
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? Timing is Key: When it's time to renew an annual software license agreement, strategic timing can work in your favour. Initiate negotiations closer to the contract expiration date to create a sense of urgency for the vendor. This approach increases your chances of securing a discounted price and favourable terms as they strive to retain your business.
?? Ask for a Better Deal: Remember, it never hurts to ask! When discussing services with a telecommunications provider, express your interest while indicating that you're considering other options as well. Initiate a competitive bidding process and leverage your potential business volume to negotiate a more favourable pricing structure and additional service features. The bottom line: just ask! ??
?? Negotiate Other Terms: When procuring real estate consultancy or any other service, don't limit your negotiations to just the purchase price/fees. Explore the inclusion of additional benefits such as briefing sessions, access to knowledge sources, or priority access to latest reports and research. By focusing on the overall value proposition, you can secure a comprehensive package that meets your requirements.
?? Be Prepared to Walk Away: In contract negotiations with a logistics provider, if you encounter significant discrepancies in their proposed pricing compared to industry benchmarks, don't be afraid to take a stand. Make it clear that you're prepared to explore other options if your concerns aren't addressed. This approach can prompt the provider to re-evaluate their proposal and ultimately offer more competitive pricing and improved service levels.
Bringing it all together
?? For procurement practitioners involved in corporate buying, effective negotiation strategies and influencing professional relationships are crucial. They'll help you achieve cost savings and favourable terms and also add value to your organisation.
And who knows, you just might end up securing that well-deserved discount! ??
What else are you seeing, that I'm missing?