Last time, we talked about some things you can do to successfully negotiate terms with your wholesale suppliers. We talked about being prepared for the negotiations, and we talked about knowing the potential pay-off so that you can stay focused and motivated during the process. Today, we’ll look at some additional things to keep in mind when negotiating terms with wholesale suppliers:
Ask for Better Terms
Once you’ve done the prep work, know what you’re asking for and why, it’s time to ask. In fact, the most overlooked yet most obvious way to get a better price is just to ask.
How you ask isn’t always really as important as the fact that you ask. Obviously you don’t want to be rude, but asking for a better price in a friendly way will go a long way. You can ask the supplier, “What’s your best price?” or “What kind of a discount can you give me?”
Asking for better terms from your wholesale suppliers doesn’t harm you in the least. In a worst case scenario, the supplier might say “I can’t give you a better price.” If that’s the case, you’re no worse off than you were before you started negotiating.
Flaunt Your Potential
It’s easy to get into the mindset that, just because you run a small business, that your business is insignificant to your wholesale supplier. In the grand scheme of things, this might be true. However, your salesperson probably makes a commission on your business. You’re not insignificant to him, or to his paycheck.
Demonstrate that you’re a good customer. Show your professionalism. Be easy to do business with. Pay promptly, and show your suppliers that you have plenty of potential to grow. If the supplier believes you will be ordering 10,000 units a month next year, they may be able to give you the same price on 5,000 units a month this year.
Be Realistic in Your Expectations
You do have to understand that your salesperson has limitations. You’re not going to get a 50% discount off the bat just because you asked. If the salesperson thinks that you are wasting their time, they’ll walk away. Have a specific and realistic figure in mind. Shoot for the moon, to be sure, but don’t ask for the stars, as well.
Next time, we will continue our series on negotiating terms with your wholesale suppliers.
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