Knowing your supplier is one of the best tools, weapons, instruments – no matter how you want to call it – to control the situation and always have the benefit in discussions, negotiations, day to day purchasing activity.

“Knowing” the supplier takes a lot of time and work at the beginning. It takes time to dig into the information, to learn all you can about their production capabilities, their partners (basically your competition), their competition; their reputation in the market and the reputation of their sales people and management; logistics and pricing, margin capabilities, service issues, quality issues, the company’s financial strengths and weaknesses, their product’s strengths, the marketing Read the rest of this entry »

Bargaining, auction or long time partnership? Basically you can reduce all to this question when it is about to consider the value of your business relationship.

Bargaining or auctions to get the best possible prices are not necessarily negative negotiation tactics. But the way you do it may harm the business relationship. So instead of thinking of “if to do it” maybe re-think on “how to do it”.

In a long time partnership with a supplier, bargaining for the prices might not be the best approach as a true partnership will bring you on a long run more value added than one time extra margin or extra sale volume. What you may gain via an aggressive price or commercial terms improvement you may loose on the other essentials aspects of the business.

In order to avoid subjectivism, just put yourself the below questions:

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