Negotiating volume purchases.

Any tips from the pros?

[sun818]

Hi, I have a niche product that is working well for me. I now have the opportunity to buy the entire stock from the distributor. This will be my biggest purchase to date. Do any of you have any advice on how to negotiate a better price and still leave us both feeling good about the transaction?

[4eyes]

Go into the negotiation with 2 prices in mind:

The maximum you are prepared to pay

The target price that you think is the realistic minimum

Prepare all the 'negatives' and risks involved in you buying the goods.
Anticipate all the 'positives' that he might throw back, and be prepared with an rational defense that limits their value.

You are now ready to negotiate - you have all the factors in the equation and you know the min and max prices that can work.

The most important rule is 'don't talk money first'. If you can, make sure that he is the first one to mention a sum of money - he might go lower than you thought, no point in throwing money away.

During the negotiation, make sure that you get all your negatives mentioned at some stage or other and that you beat off his positives.

If you really have to quote money first, start with your prepared minimum, and let him beat you up.

Hope this helps

...and good luck

[sun818]

Unfortunately, he talked price as the first reply to my showing interest in the lot. I presented the risks and the difficulties involved with making such a big purchase. He offered his price and is not willing to go lower. It is basically a take it or leave it situation. The price is $0.60 lower what I usually pay for a smaller lot, so that is a better price. Its not ideal, but I do not get the feeling he will go any lower.

[4eyes]

Don't forget to factor in the cost of tying up your money for as long as it takes to sell the goods, and also the risk of some event happening that reduces the resale value of the goods.

If it it stil makes sense to buy after this - then buy. If not, or if it is marginal, go back and tell him no deal at that price. There is always a chance that he is just negotiating hard and might still back down.

[robertito62]

Have a friend bid a higher price, let it run, then leave. He will take your lower offer... and be happy about it.