Charles Dominick, SPSM, SPSM2, SPSM3 2014-10-10 00:56:48
“I’m not going to negotiate that purchase; it’s not worth my time.” If you’ve ever said that to yourself, you’re not alone. Every day, buyers place small-value orders at list price without negotiating them. Many of those same buyers reserve their time for negotiating larger purchases or for more strategic activities. Directing more time towards activities with the biggest return on investment (ROI) is indeed noble. But ignoring easy opportunities to add to your cost savings total isn’t always smart. For example, if you could save your organization $50 (U.S.) by devoting two minutes of your time to doing so, would you spend the time doing it? If not, consider that the ROI of your time would be equivalent to a rate of $1,500 per hour. Do you get paid $1,500 per hour or more? If not, then utilizing those two minutes to save money produces a positive ROI for your employer. Obviously, you need to accomplish your highest priorities first. But while big negotiations require lots of planning, small purchase negotiations sometimes just require that you ask one simple question that results in savings. Here are examples of questions I’ve used to quickly achieve small savings that have added up over the long term: 1 How much flexibility do you have with your price? 2 What discounts are available to my organization? 3 What’s the lowest price you (and/or your manager) are able to offer me? I can’t even count the number of times I’ve gotten a response like: “I can give you a 10 percent discount.” So, in mere seconds, money was saved for my employers in situations where I may have felt “too busy to negotiate.” Try one of these questions the next time you are tempted to say that negotiating a small-value order isn’t worth it. Also, if you Have internal customers who place their own small-value orders and aren’t exactly professional negotiators, share these questions with them to help them save money, too. CHARLES DOMINICK is the founder and president of Next Level Purchasing, Inc. They are located at 1315 Coraopolis Heights Road, Suite 1001, Moon Township, Pennsylvania, 15108. Call them at 412. 294.1990, or email help@nextlevel purchasing.com. Visit www.nextlevel purchasing.com for more information.
Published by American Fastener Journal. View All Articles.
This page can be found at http://bluetoad.com/article/Smart+Negotiation+For+Small+Purchases/1832315/228390/article.html.