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Learning to negotiate with suppliers is a business art

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Many businesses rely on suppliers or vendors for inventory, raw materials or services, and that makes contract negotiation skills essential to securing the best prices, terms and product quality. Becoming a skillful negotiator requires a business owner to know what his business needs and can do without and what materials costs are common in his industry. It also requires flexibility and a willingness to compromise — qualities that can lead to a sustainable business-to-business relationship.
Price isn’t everything: Sometimes getting the best price for a product requires a business to buy in volume or agree to inconvenient delivery schedules. Sometimes it means getting a product of lower quality. Not all businesses can afford this. A lean manufacturer who wants raw materials right when they’re needed on the assembly line might be willing to pay more for this guarantee; for this business, punctual delivery isn’t negotiable. The same is true for a restaurateur who needs regular stocks of perishable goods in time to prepare fresh meals. But a business with lots of warehouse space might get a deep discount by buying in large volumes at irregular intervals.


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Los Alamos Monitor | lacirculation@lamonitor.com | 505-662-4185
256 DP Road, Los Alamos, NM 87544
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