I’ll show you the some magic words of any negotiation when in a business setting. Get out your pencil and paper, are you ready? Here they are:
“We don’t need it.”
Yes, it’s that simple. The whole of your business success in negotiating the best possible value on purchases come down to those four words. Once you and your team truly believe that you don’t need the item that you are buying, the better the price and value you will be getting in return. However, the opposite is true as well, the more you and your team are convinced that you do need a product, the more you will pay and the less value you’ll gain.
Believe it or not, the whole of negotiation in business dealings with vendors is truly that simple. Of course, there is a lot more to negotiating with vendors, but these four words will pay off more than you can realize until you start to use them. There is a solid reasoning behind this, and here it is:
If you truly feel you “need” a product, then you aren’t bargaining with a vendor – you are begging for their help.
Now, you have lost your bargaining chips as well as an leverage you had when you walked into the room. The leverage that you want to keep in your corner is the ability to get up and walk away from the bargaining table, preferably in a hurry, and not return. One of my favorite pieces of advice on negotiating is this: “Don’t fall in love with one, fall in love with three.” With three different products from three different vendors, you no longer are at the mercy of one, they are at your mercy.
The overall concept of negotiating with vendors can be a tough one, and these four words can add another layer that you may not be used to. The application can be more tricky than you realize even though the overall concept is really basic. The key is to realize that there are always other vendors and businesses out there that offer products that are basically the same as what you are looking at right now. If there wasn’t, that particular vendor could charge through the ceiling for their product and everyone would pay it.