Improving the terms.
WHAT TO ESTABLISH BEFORE NEGOTIATING
What you need What you would accept What your alternative is
WHY THE ALTERNATIVE MATTERS MOST
It determines your actual position.
WHAT TO NEGOTIATE BESIDES PRICE
Payment terms Delivery timing Warranty period Support levels Training Spare parts and consumables Price stability over a period Volume arrangements
WHY BEYOND PRICE
Suppliers resist price reductions and frequently concede elsewhere.
WHAT PAYMENT TERMS ARE WORTH
Real money, through cash flow.
WHAT TO ASK FOR
Longer terms, or a discount for faster payment.
WHAT TO OFFER IN RETURN
Volume commitment A longer contract Faster payment A reference
WHY OFFER SOMETHING
Unreciprocated demands produce resistance.
WHAT TO AVOID
Squeezing suppliers to the point of unsustainability.
WHY
They cut quality, deprioritise you, or fail.
WHAT TO AIM FOR
Terms both parties can sustain.
WHAT TO BE CAREFUL WITH
Winning on price and losing on service Agreeing terms verbally
WHAT TO CONFIRM
Everything agreed, in writing.
WHAT TO DO ABOUT ANNUAL INCREASES
Establish what will happen before signing.
WHY
Uncapped increases in long contracts are a common surprise.
WHAT TO NEGOTIATE
A cap, or a defined mechanism.
