Negotiating a purchase - checklist

Many people lack confidence when it comes to negotiating purchases - but you could be allowing suppliers to walk all over you. Read our tips on how to negotiate a deal that gets you the products or services you want or need at a price you are happy to pay

• Decide how much you want the deal; identify how much it is worth to you and what alternatives you have.
• Find out as much as possible about the supplier's position: how much they need your order and what their priorities are.
• Work out what you could offer, if necessary, that the supplier would value - a larger order or prompt payment, for example.
• Set your objectives; decide what your targets are for price and other terms such as delivery timings, what your priorities are and what compromises would be acceptable to you.
• If possible, choose the right time for the negotiation: when you will be under no pressure to reach a deal but the supplier will.
• Do your research up front. What other products and suppliers are in the market and how do they stack up in comparison?
• Before the negotiation begins, prepare yourself to be firm but fair, aiming for a deal that will suit you but also keep the supplier happy.
• Restate the specification of what you require and agree with the supplier the key points to be negotiated.
• From the outset try to get the supplier to state a starting price which you can negotiate downwards.
• Do not reveal your negotiating position; focus on asking questions and sounding positive without giving information away.
• Undermine the supplier's price: focus on weaknesses in what the supplier is offering and ask for trade or bulk discounts.
• Ask for other concessions, such as better payment terms; make sure that any concession you are offered is of genuine value to you.
• Confirm every concession the supplier makes.
• Only make concessions yourself in exchange for something you value.
• Be alert to any tactics the supplier uses, such as trying to create a sense of urgency; be prepared to postpone a decision if you need time to think.
• Follow up with a written agreement which includes recourse if you are not happy with the supplies.