Getting The Right Deal
There are many facets of a vendor or supplier relationship to consider when negotiating terms. These facets revolve around the following:
What’s in it for me? This seems obvious but many a business person has launched into a deal where they did not understand the true benefits a particular vendor or supplier gave them. They basically just followed the crowd and did what everyone else did.
What’s in it for them? A mutually beneficial relationship requires both parties to understand what each one brings to the partnership. Having a keen insight into why a particular vendor or supplier wants your businesses will make the deal easier to do.
What really matters to my business: Sometimes price will matter while other times maybe turn around time is your hot button issue. Whatever the issue, understand how each vendor and supplier contributes to your business and how that plays into your core business needs.
Can they deliver? Vendors and suppliers can promise a lot but never deliver. This is especially true for small vendors that are ramping up their capabilities. Be aware of the particular challenges that your company may apply to a supplier so that you can judge their ability to deliver.
The list above is my no means exhaustive but gives a good starting point for figuring out the type of deal your company needs. One thing to avoid is to make the process all about price. The price you will pay is always important but there are so many other considerations that may matter more. Assess your real needs and then go after the deal that makes the most sense.