Buyers whose job is buying.
WHAT THEIR ROLE IS
Securing terms, managing risk and enforcing process.
WHAT THAT MEANS
Their incentive is to extract concessions.
WHAT TO ESTABLISH
Whether they decide, or execute a decision made elsewhere.
WHY THAT MATTERS ENORMOUSLY
If the decision is made, procurement negotiates terms only.
WHAT TO DO BEFORE PROCUREMENT IS INVOLVED
Establish value with the people who have the problem.
WHY
Once it reaches procurement, you are compared on price.
WHAT TO EXPECT
Requests for discount, without justification Comparison with alternatives Standard terms presented as non-negotiable Delay as a tactic
WHAT TO DO ABOUT DISCOUNT REQUESTS
Trade, rather than concede.
WHAT TO ASK FOR IN RETURN
Longer term Faster payment A reference Larger scope
WHAT TO DO ABOUT STANDARD TERMS
Read them, and negotiate what matters.
WHAT MATTERS MOST
Liability Payment timing Termination Intellectual property
WHAT TO AVOID
Accepting terms you cannot meet Conceding to close before a quarter end
WHY THAT SECOND POINT
Your deadline is leverage for them.
WHAT TO MAINTAIN
Contact with the people who wanted it.
WHY
They can intervene.
