How Good a Deal Can You Make?  It May Depend on Your Attitude. 

A frequent obstacle to professional negotiations is the customer’s attitude. In many cases the customer has a friendly, close relationship with the supplier. As a result, the customer is less than objective in analyzing the supplier’s proposals and provisions.

The attitude adjustment points listed below will help customers maintain objectivity. These points are useful to remember, not only at the outset of negotiations but throughout the entire negotiating process. 

• The customer is the buyer and the supplier is the potential supplier.
• Change “needs” to “preferences.”
• At the traditional negotiation time, the customer’s account has already been projected  as having been “sold” by the supplier representative. Use this to your advantage.
• Many pressures are on supplier representatives for goal performance. Use these pressures to the customer’s negotiating advantage.
• Suppliers may attempt to convert any sense of urgency to their negotiating benefit. Remember—“haste makes waste.” Customers have the advantage in a fast-paced situation if their side is well prepared, has alternatives and can set the deadlines.
• Suppliers bringing in “top brass” can work to your advantage; don’t be overwhelmed. Use the agenda to achieve substantive negotiation points.
• Never rely on promises and benefits—unless they are documented, clearly written contractual commitments. Customers who know they will be held accountable for “trusting” suppliers quickly learn to become highly effective negotiators.
• Supplier management is primarily interested in bottom-line profitability and allocating risks to the customer—not in interpersonal relationships.
• Several suppliers should be considered for most acquisitions, although your primary suppliers will continue to promote themselves as the “only answer.”
• Understand you have choices among suppliers. Keep this in mind during the negotiation process; don’t hesitate to remind the supplier that you’re aware of these choices.
• Remind suppliers that only when you are fully satisfied and the agreement is fully documented in writing will all negotiations end.
• Ignore claims of “this is absolutely the best deal we can give you,” especially when declared early in the negotiations.
• If you haven’t heard a “No!” from your opponent, or if you haven’t had a deadlock, an impasse or some sort of breakdown in negotiations, you haven’t achieved the best deal.
• Negotiations are enhanced by thorough preparation, planning, knowledge, teamwork and dedication to contractual protection and financial optimization.
• Competition is your strongest negotiation ally!