Can You Negotiate Lower Prices From Your Vendors?

Missed opportunities result from complacency. Occasionally questioning the prices you pay for products and services makes sense for businesses of all sizes. The trouble is that small businesses are more likely to lack the skills and experience to do this.

"What you've been paying your vendors does not have to be the final word on what you continue paying. Ultimately, vendors want to stay in business, too, and they're dealing with a tough economy just as you are. Many are often willing to negotiate lower prices rather than lose a regular customer."

- Ian Aronovich, GovernmentAuctions.org

An article by Kevin Brown on Hubspot's blog offers several excellent tips for negotiating better deals with vendors. Here are a few highlights:

• You don't know what you don't know. Do background research.
• Learn what the other person needs most.
• Recognize that for most companies, keeping you as a customer is cheaper than gaining a new customer. This is leverage in your favour.
• Start when there is no deadline to avoid negotiating under one.

Most importantly, recognize the fine line that will keep the negotiations from impacting your long term business relationship.

How long has it been since you reviewed the prices you pay to your key vendors? Perhaps it's time.