Offering to pay in advance
One route SMEs can take is to offer to pay for goods in advance of them being shipped by the supplier. Some 27% of global trade transactions involve cash-in-advance payment to suppliers, according to the IMF and the Bankers Association for Finance & Trade.Talking yourself up
Throughout the negotiation process, try to think like a supplier. What would make them stay if you want to pay less? If they see your business as a high-growth company with a good track record, they will be more willing to partner with you and offer favourable rates to ensure they benefit from your future growth.Is it worth asking for a better price?
Research the cost of goods beforehand. You might already be getting a better price. By knowing the prices offered by your supplier’s competitors, you can work out roughly how much room there is for negotiation, putting you in a stronger position. Try to avoid mentioning how much other suppliers charge for the same product, as this could damage the relationship you have with your existing supplier by undermining your loyalty to them. Ultimately, suppliers are more likely to offer discounts and favourable rates if you work to establish your business as a trusted and loyal partner. Provide a win-win solution they can’t afford to turn down and you’ll be well on your way to securing a strong relationship post-Brexit.Share this story