Negotiation method | How to deal with the supplier’s negotiation skills?

By justchinait
 / 
September 30, 2020
 / 

Compared with small suppliers, many buyers are more willing to cooperate with large suppliers because they have strong funds, stable product supply and guaranteed delivery. Moreover, these suppliers have a large variety of products. This product is not profitable, and other products can make money. As long as the overall profitability is maintained, they can psychologically accept the buyer’s conditions.

But regardless of whether it is a large or small supplier, they will poor-mouth when negotiating with them, saying that the gross profit is very low, there is no money to make, and the money made is not enough to keep the factory running, etc. To make you unbearable. Or it may accuse your work, your inspection is too picky, etc. They will try to make you feel guilty, so as to make you embarrassed to make your request, or even if the supplier agrees to you, they will assume a position of disadvantage and want to get corresponding favorable compensation.

In dealing with such situations, we cannot just give in or insist. We must first understand whether the supplier’s accusations are reasonable, whether they have already understood our point of view, and then make a judgment, and at the same time communicate what they have learned with the supplier.

Negotiation strategies and response methods with suppliers

1. Suppliers poor-mouth

 

Suppliers do so because they are unwilling to make concessions, or although they have made concessions, they want to obtain favorable conditions to compensate for their inconvenience.

Coping method: You should listen carefully to their opinions and recognize whether their accusations are reasonable; or whether you have not explained enough. If so, look for opportunities to explain to them. But first listen sincerely, while insisting on your interests.

 

2. The supplier suddenly remained silent during the negotiation

To remain silent is to make you feel uneasy. And encourage you to constantly talk to obtain useful information. It belongs to a defensive strategy based on defense, and it is also a means they often use in negotiations. Sometimes, they are hesitant to agree to you, wanting to take this opportunity to have a chance.

Coping method: In this situation, we must actively try to get the supplier to express this meaning, and ask whether their silence means that there is still not enough communication between us.

 

3. Suppliers often tell how good their products are

 

Suppliers often want to create an illusion for you, to make you believe in their strength, trust his credit, etc., so you can rashly agree to some of their requirements, or want you to make a greater concession. For example, a certain supplier advertises how good its price and quality are, so as to obtain a higher purchase price.

How to deal with it: Don’t trust the supplier’s side words. If you don’t fully understand the market, you should euphemistically delay the matter. It is recommended to discuss the details of the key issues later.

 

4. Suppliers delay time

Suppliers often use various methods to delay in order to obtain more information from you. For example, they want to know your final terms, but they refuse to decide on the grounds of discussing with the boss first.

Coping method: Plan carefully in advance and stick to your goals. Unless both parties have decision-making power, don’t reveal your hole cards lightly.

 

5. The supplier will give you an ultimatum and give you pressure

They will say that I have tried my best and the price cannot be lower, either accept it or forget it. They did this to test your reaction and force you to make concessions to keep the negotiations going.

Coping method: Don’t make any promises, you have to know that your opponent is watching you closely. At this time, we don’t have to answer this question head-on. We should look for an opportunity to move on to another new question.

 

6.The supplier will use the red face/white face strategy.

 

Sometimes the supplier will use the red face and the white face strategy to strive for more benefits or less concessions. The cooperation of the two will disturb your mood and make you agree to his request.

The first negotiator played the role of a “white face”, and his responsibility was to arouse the other party’s reaction that “this person is not easy to provoke” and that “it is really unlucky to encounter this kind of negotiation opponent. The second negotiator played the “red face”, that is, the role of the “peace angel”, which made the other party feel “finally relieved.” In this way, the two appeared alternately, taking turns to battle until the negotiation reached its goal.

Coping method: We should pay less attention to the red-faced people in the negotiation according to how far the target distance between the two sides is. We should try to change the attitude of the white-faced people (strong attitude) and try to explain the rationality and sufficiency of our requirements.

 

7. Supplier: My authority is limited

Sometimes the supplier will send a salesperson to negotiate first, then the business manager, and then the manager. Every negotiation requires you to be fully involved so that your information is fully exposed to the other party. They do not make promises lightly, but they vote at any time when they think it is advantageous, causing you to accept some unfavorable negotiation results. We must have a clear understanding of the situation and raise the parties’ unequal status in the negotiation to the other side, and the negotiation is meaningless. You can make a decision, and the other party needs to consult with the superior.

Coping method: It is required to talk with people who have the right to make a choice, which can hint to suppliers that they are dissatisfied with their disrespectful negotiation attitude, exert invisible psychological pressure, and pave the way for future negotiations.

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