--- title: 10 Tips To Help You Negotiate Better With Suppliers description: An essential part of vendor management is negotiating contracts. Use these tips to help you negotiate better for your organization. image: https://blog.vendinggroup.com/hubfs/Stock%20images/Business%20handshake%20closing%20a%20deal%20at%20the%20office.jpeg --- [![logo.png](https://blog.vendinggroup.com/hs-fs/hubfs/images/site/logo/logo.png?width=80&height=65&name=logo.png "logo.png")](https://www.vendinggroup.com) [** ** ](https://twitter.com/Vending_Group) [** ** ](https://www.facebook.com/pages/Vending-Group/174125279274403) [** ** ](https://plus.google.com/103512082635347214863) [Customer Service](https://www.vendinggroup.com/industry-leading-customer-service) ### *Office Vending Services | Beverage & Snack Machines* view our [service areas](https://www.vendinggroup.com/service-areas) - [Services](https://www.vendinggroup.com/soda-and-snack-vending-machines) - [Beverage & Snack Vending](https://www.vendinggroup.com/soda-and-snack-vending-machines) - [Healthy Vending](https://www.vendinggroup.com/fresh-healthy-vending) - [Coffee Services](https://www.vendinggroup.com/coffee-services) - [Vending Management](https://www.vendinggroup.com/national-vending-management-services) - [Micro Markets](https://www.vendinggroup.com/micro-markets) - [Pantry Delivery](https://www.vendinggroup.com/pantry-delivery) - [Vended Laundry](https://www.vendinggroup.com/vended-laundry) - [Stockwell](https://www.vendinggroup.com/stockwell) - [Office Water Solutions](https://www.vendinggroup.com/office-water-solutions) - [Massage Chair Vending](https://get.vendinggroup.com/vending-massage-chair) - [Coke Machines](https://www.vendinggroup.com/coke-machines) - [Pepsi Machines](https://www.vendinggroup.com/pepsi-machines) - Resources - [Blog](https://blog.vendinggroup.com) - [What is Vending Management?](https://www.vendinggroup.com/vending-management) - [Full-Service Vending Machines](https://www.vendinggroup.com/full-service-vending-machines) - [Vending Machine Size Guide](https://www.vendinggroup.com/coca-cola-vending-machine-size-guide) - [Customer Service](https://www.vendinggroup.com/industry-leading-customer-service) - Flavor Choices - [Coke Machine Flavors](https://www.vendinggroup.com/coke-machine-flavors) - [Pepsi Machine Flavors](https://www.vendinggroup.com/pepsi-machine-flavors) # Learning ## 10 Tips To Help You Negotiate Better With Suppliers [fa icon="clock-o"] Oct 5, 2017, 10:01:26 PM [fa icon="user"] [Vending Group](https://blog.vendinggroup.com/author/vending-group) ![Business handshake closing a deal at the office.jpeg](https://blog.vendinggroup.com/hs-fs/hubfs/Stock%20images/Business%20handshake%20closing%20a%20deal%20at%20the%20office.jpeg?width=640&name=Business%20handshake%20closing%20a%20deal%20at%20the%20office.jpeg)One of the most valued skills in vendor management is negotiation. Careers can be made through artful negotiating if it gets your company the deals it needs in order to grow and be successful. For some people, it comes naturally. For others...not so much. But that's okay. Becoming a strong negotiator isn't determined by your DNA. With these tips and some practice, you'll be able to negotiate with any supplier with the confidence needed to close the deal. ## 10 Tips to Negotiate Better Deals With Your Vendors & Suppliers ### Pre-Negotiation ![Be Prepared sign with sky background.jpeg](https://blog.vendinggroup.com/hs-fs/hubfs/Stock%20images/Be%20Prepared%20sign%20with%20sky%20background.jpeg?width=320&name=Be%20Prepared%20sign%20with%20sky%20background.jpeg) **1. Do Your Research** Knowledge is power, and the last thing you want to be in any negotiation is power*less*. It's essential that you have a full understanding of the topic you're going to discuss with your supplier prior to the negotiation. For example, if you're trying to renegotiate terms of an agreement with a supplier, you need to know as much about those their industry as possible. That includes what it takes to provide the service, who the vendor's competitors are and how they differ, and any other information relevant to their company. This shows the supplier that you know there are alternatives, which gives you more leverage in the negotiation. Without this leverage, the supplier gains power and you could end up having to make larger concessions than anticipated. **2. Control the Logistics** You should dictate when, where, and how the negotiation will take place. By being too accommodating, you lose control and any perceived power you have over the supplier. And, according to [this study](http://psycnet.apa.org/record/2003-08110-009), the more power you have the more likely you are to get a favorable deal in the negotiation. The deciding factor for controlling the logistics is the medium through which you want the negotiation to take place. Will it be done by phone? Face-to-face? Email? Each of these are acceptable ways to conduct a negotiation. However, according to [this research](https://hal.archives-ouvertes.fr/hal-00645175/document), gender plays an interesting role here. Women tend to do better at face-to-face negotiations, while men are better with email. As the study shows, when we meet face-to-face, we're more likely to assume our traditional gender roles. Females exert more caring and communicative behaviors, while males become more aggressive and dominant. When scheduling the negotiation, try for an early appointment as this will allow for ample time to discuss everything that needs to be covered.  ### During The Negotiation ![startup business people group have meeting in modern bright office interior, senoir investors and young software developers.jpeg](https://blog.vendinggroup.com/hs-fs/hubfs/Stock%20images/startup%20business%20people%20group%20have%20meeting%20in%20modern%20bright%20office%20interior%2c%20senoir%20investors%20%20and%20young%20software%20%20developers.jpeg?width=320&name=startup%20business%20people%20group%20have%20meeting%20in%20modern%20bright%20office%20interior%2c%20senoir%20investors%20%20and%20young%20software%20%20developers.jpeg) ** 3. Establish Rapport** Even if you've known the supplier with whom you're going to negotiate for a long time, it's important to set a positive tone right away. Start by disclosing something personal and unrelated to the negotiation. While it might seem counterproductive, it helps the other party see you in a more 'human' way and can prevent them from getting too aggressive.  **4. Sell Your Value To Them** Have you used their product or service before? If so, how much? Can you offer more business for them? When negotiating with suppliers, it's important to think of their needs, too. They are, after all, a business just like yours who wants to grow, sell more products, and [maintain great relationships](https://blog.vendinggroup.com/how-to-optimize-vendor-relationships). Mention your track record of purchases with them so they know how much business to expect from you in the future.  **5. Mention Competitors** In your research prior to the negotiation, you should have gained knowledge of their main competitors and what they can offer. Let them know this. Nobody likes to lose, and the sound of a competitor's name will make them more eager to work with you. Just be sure not to disclose any pricing information you've received, as it can give them more leverage in the negotiation. **6. Don't Accept the First Offer** This goes without saying, but it's worth repeating. If you accept the first offer, all that power you built up to this point is moot. Instead, come back with a low counter offer. Once they respond with a revised figure, see if they can include anything else in the offer. **7. It's Not Only About Price** If the supplier won't budge on pricing, think of other ways to get more for your money. Faster shipping, a lower down payment, or a discount if your purchase product in bulk are always on the negotiation table even if standard pricing is not negotiable. **8. Take Your Time** Never rush through a negotiation. If you feel pressured by the supplier, let them know you will need more time to think about the offer. Remember, you control the process. ### After The Negotiation ![Business man pointing to transparent board with text Follow Up.jpeg](https://blog.vendinggroup.com/hs-fs/hubfs/Stock%20images/Business%20man%20pointing%20to%20transparent%20board%20with%20text%20Follow%20Up.jpeg?width=320&name=Business%20man%20pointing%20to%20transparent%20board%20with%20text%20Follow%20Up.jpeg) So, you've spent hours going back and forth on several key points in the agreement and you're both satisfied. Congratulations! You have a deal. What do you do now? **9. Send a Thank You Email** Do this as quickly as possible. Chances are the negotiation got a little heated at times, and you want to reinforce your admiration and desire to work with the supplier. Use this email to summarize the terms discussed and to compliment the negotiating skills of the supplier. [This study](http://web.mit.edu/curhan/www/docs/Publications/Curhan_Objective_Value_of_Subjective_Value.pdf) done by the Wharton School of Business explains that the supplier will be more satisfied with the deal, and will be more likely to negotiate with you again in the future. **10. Thoroughly Read Through Final Agreement** Before you sign the contract with the supplier, read through it carefully. While it's unlikely they will intentionally try to include terms not agreed upon, a simple human error is possible.  Negotiating is not an easy task. But if you work in supplier management, it's an essential skill needed for success and these tips will help. Keep in mind that you want to be somebody the supplier wants to do business with. Establishing a solid, lasting relationship with your supplier or vendor is good for your business and their's. It might also result in more incentives once they see your loyalty to their service. --- [Vending Group](https://www.vendinggroup.com/) consolidates vending services into a single account for hotels, apartment complexes, retail and other businesses with multiple locations nationwide. Contact us to learn more.   ## Frequently Asked Questions About Negotiation Tips ### Why is doing research important before negotiating with suppliers? Doing research gives you knowledge about the supplier's industry, competitors, and services, which provides leverage in negotiations. It shows the supplier you have alternatives, preventing them from gaining too much power over you. ### How can controlling the logistics of a negotiation affect the outcome? Controlling when, where, and how the negotiation takes place helps you maintain power and influence over the process. Being too accommodating can reduce your leverage and affect the favorability of the deal. ### What role does establishing rapport play during a negotiation? Establishing rapport by setting a positive tone and sharing something personal helps humanize the interaction. This can prevent the supplier from becoming too aggressive and fosters a more cooperative negotiation environment. ### Why should you mention competitors during negotiations? Mentioning competitors signals to the supplier that you have other options, which can motivate them to offer better terms. However, you should avoid sharing specific pricing information to maintain your negotiating advantage. ### Is it advisable to accept the first offer from a supplier? Why or why not? Accepting the first offer is not advisable because it wastes the leverage you have built. Instead, making a low counteroffer encourages further negotiation and can lead to better terms. ### What alternatives to price can be negotiated with suppliers? If the supplier is firm on price, you can negotiate other aspects such as faster shipping, lower down payments, or discounts for bulk purchases to get more value from the deal. ### How should you handle feeling pressured during a negotiation? If you feel pressured, it's important to take your time and communicate that you need more time to consider the offer. Remember, you control the negotiation process and should not rush decisions. ### What steps should be taken after successfully negotiating a deal? After reaching an agreement, send a thank you email summarizing the terms and expressing appreciation. Also, carefully read through the final contract to ensure all agreed terms are correctly included before signing. - [Tweet](https://twitter.com/share) ![Vending Group](https://blog.vendinggroup.com/hs-fs/hubfs/images/site/logo/logo.png?width=100&height=100&name=logo.png) #### Written by [Vending Group](https://blog.vendinggroup.com/author/vending-group) ### Check Available Solutions for Your Location ### Subscribe to Email Updates - Recent - Popular - Categories ### Lists by Topic - [Vending Management (98)](https://blog.vendinggroup.com/topic/vending-management) - [Vending Machines (91)](https://blog.vendinggroup.com/topic/vending-machines) - [Customer Experience (68)](https://blog.vendinggroup.com/topic/customer-experience) - [Products (49)](https://blog.vendinggroup.com/topic/products) - [Workplace (33)](https://blog.vendinggroup.com/topic/workplace) - [Hospitality (29)](https://blog.vendinggroup.com/topic/hospitality) - [Multifamily Housing (20)](https://blog.vendinggroup.com/topic/multifamily-housing) - [Logistics & Warehousing (13)](https://blog.vendinggroup.com/topic/logistics-warehousing) - [Procurement (12)](https://blog.vendinggroup.com/topic/procurement) - [Retail (12)](https://blog.vendinggroup.com/topic/retail) - [Coffee Vending (9)](https://blog.vendinggroup.com/topic/coffee-vending) - [Massage Chairs (4)](https://blog.vendinggroup.com/topic/massage-chairs) - [office water (4)](https://blog.vendinggroup.com/topic/office-water) - [micro-market (3)](https://blog.vendinggroup.com/topic/micro-market) - [Laundry (1)](https://blog.vendinggroup.com/topic/laundry) - [VG2 Form (1)](https://blog.vendinggroup.com/topic/vg2-form) - [college (1)](https://blog.vendinggroup.com/topic/college) [see all](https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers#) ### Categories - [Coffee Vending (9)](https://blog.vendinggroup.com/topic/coffee-vending) - [college (1)](https://blog.vendinggroup.com/topic/college) - [Customer Experience (68)](https://blog.vendinggroup.com/topic/customer-experience) - [Hospitality (29)](https://blog.vendinggroup.com/topic/hospitality) - [Laundry (1)](https://blog.vendinggroup.com/topic/laundry) - [Logistics & Warehousing (13)](https://blog.vendinggroup.com/topic/logistics-warehousing) - [Massage Chairs (4)](https://blog.vendinggroup.com/topic/massage-chairs) © 2012 - 2026 Vending Group, Inc. - [Services](https://www.vendinggroup.com/soda-and-snack-vending-machines) - [Coke Machines](https://www.vendinggroup.com/coke-machines) - [Pepsi Machines](https://www.vendinggroup.com/pepsi-machines) - Resources ```json { "@context" : "https://schema.org", "@id" : "https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers#blogposting", "@type" : "BlogPosting", "about" : [ { "@type" : "Thing", "name" : "Supplier Negotiation", "sameAs" : "https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers" }, { "@type" : "Thing", "name" : "Vendor Management" }, { "@type" : "Thing", "name" : "Business Contract Negotiation" } ], "articleSection" : [ "Vendor Management", "Negotiation Strategies", "Business Tips", "Supplier Relations" ], "author" : { "@id" : "https://www.vendinggroup.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.vendinggroup.com/hs-fs/hubfs/Vendinggroup_October2016_Theme/images/logo-2x.png" }, "name" : "Vending Group", "sameAs" : [ "https://vendinggroup.com", "https://blog.vendinggroup.com", "https://get.vendinggroup.com", "https://www.linkedin.com/company/vendinggroup", "https://twitter.com/vendinggroup", "https://instagram.com/vendinggroup" ], "url" : "https://www.vendinggroup.com" }, "dateModified" : "2024-06-05T15:04:00-06:00", "datePublished" : "2017-10-06T02:01:26-06:00", "description" : "An essential part of vendor management is negotiating contracts. Use these tips to help you negotiate better for your organization.", "hasPart" : { "@type" : "WebPageElement", "cssSelector" : ".faq-box", "isAccessibleForFree" : true }, "headline" : "10 Tips To Help You Negotiate Better With Suppliers", "image" : "https://cdn2.hubspot.net/hubfs/2491373/Stock%20images/Business%20handshake%20closing%20a%20deal%20at%20the%20office.jpeg", "inLanguage" : "en-US", "isAccessibleForFree" : true, "isPartOf" : { "@id" : "https://blog.vendinggroup.com/#website", "@type" : "WebSite" }, "keywords" : [ "supplier negotiation tips", "vendor management", "business negotiation strategies", "contract negotiation", "supplier relations", "negotiation tactics", "vendor contract tips", "business deal negotiation", "negotiating with suppliers", "supplier leverage" ], "mainEntityOfPage" : { "@id" : "https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers#webpage", "@type" : "WebPage" }, "mentions" : [ { "@id" : "https://www.vendinggroup.com/#organization", "@type" : "Organization", "name" : "Vending Group" }, { "@type" : "Thing", "name" : "Supplier Competitors" }, { "@type" : "Thing", "name" : "Negotiation Logistics" }, { "@type" : "Thing", "name" : "Business Relationships" }, { "@type" : "Thing", "name" : "Thank You Email" }, { "@type" : "Thing", "name" : "Contract Agreement" }, { "@type" : "Thing", "name" : "Power in Negotiations" }, { "@type" : "Thing", "name" : "Negotiation Alternatives" } ], "publisher" : { "@id" : "https://www.vendinggroup.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.vendinggroup.com/hs-fs/hubfs/Vendinggroup_October2016_Theme/images/logo-2x.png" }, "name" : "Vending Group", "sameAs" : [ "https://vendinggroup.com", "https://blog.vendinggroup.com", "https://get.vendinggroup.com", "https://www.linkedin.com/company/vendinggroup", "https://twitter.com/vendinggroup", "https://instagram.com/vendinggroup" ], "url" : "https://www.vendinggroup.com" }, "url" : "https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://blog.vendinggroup.com/tips-that-will-make-you-negotiate-better-with-suppliers#faq", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Doing research gives you knowledge about the supplier's industry, competitors, and services, which provides leverage in negotiations. It shows the supplier you have alternatives, preventing them from gaining too much power over you." }, "name" : "Why is doing research important before negotiating with suppliers?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Controlling when, where, and how the negotiation takes place helps you maintain power and influence over the process. Being too accommodating can reduce your leverage and affect the favorability of the deal." }, "name" : "How can controlling the logistics of a negotiation affect the outcome?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Establishing rapport by setting a positive tone and sharing something personal helps humanize the interaction. This can prevent the supplier from becoming too aggressive and fosters a more cooperative negotiation environment." }, "name" : "What role does establishing rapport play during a negotiation?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Mentioning competitors signals to the supplier that you have other options, which can motivate them to offer better terms. However, you should avoid sharing specific pricing information to maintain your negotiating advantage." }, "name" : "Why should you mention competitors during negotiations?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Accepting the first offer is not advisable because it wastes the leverage you have built. Instead, making a low counteroffer encourages further negotiation and can lead to better terms." }, "name" : "Is it advisable to accept the first offer from a supplier? Why or why not?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If the supplier is firm on price, you can negotiate other aspects such as faster shipping, lower down payments, or discounts for bulk purchases to get more value from the deal." }, "name" : "What alternatives to price can be negotiated with suppliers?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "If you feel pressured, it's important to take your time and communicate that you need more time to consider the offer. Remember, you control the negotiation process and should not rush decisions." }, "name" : "How should you handle feeling pressured during a negotiation?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "After reaching an agreement, send a thank you email summarizing the terms and expressing appreciation. Also, carefully read through the final contract to ensure all agreed terms are correctly included before signing." }, "name" : "What steps should be taken after successfully negotiating a deal?" } ] } ```