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7 key elements of successful trade negotiations

Posted by Andrew Butt on 27-Nov-2018 10:15:00

The phrase win-win is probably over-used, but I am going to use it anyway to describe the situation where both parties come out of a negotiation feeling like they have won. Let’s be honest. If you think you won and the other party (your supplier or your customer) feels they lost, then it’s not really a good situation.

Price is important, but (particularly in industries like building materials distributors and grocery retailers where margins are tight) time to market, supply chain reliability, innovation, quality and flexibility are elements that contribute significantly towards a company’s competitive edge.

If the customer feels they lost, then maybe they have stuck with you because they need to in the short term, but in most situations, they could well be looking to take their business elsewhere in the future.

If the supplier feels they were the loser in the negotiation, then it’s highly likely the customer will suffer. Suppliers will naturally share innovations, opportunities and ideas with those customers they enjoy working with the most. And, of course, they will be better prepared to win the next round of negotiations.

Both sales and procurement people have to be strong characters, but in a globally competitive market it is “collaboration” rather than “competition” that has become their watch-word.

Of course, successful negotiations aren’t just measured by how the sales and procurement people felt at the time of signing off the deal. Truly successful deals deliver on the promised benefits to both parties with ease.

So, what are the 7 elements that make for successful negotiations?

Find out by downloading our eBook "7 keys to unlock mutual growth with B2B deals".

7 keys to unlock mutual growth click to download 

 

 

Topics: Supplier collaboration, Procurement Excellence