Manage episode 261319705 series 2416
We’ve talked a lot about how important it is to find the right vendor. They can make or break your business. That’s why we put so much work into meeting, interviewing, screening, and qualifying potential vendors. But once you’ve found the right vendor, you still need to actually make a deal. Specifically, you need to agree on price and terms.
To set yourself up for success, it’s a good idea to do some research and preparation. If you know what things should cost, and you know what you need from a deal, and you can anticipate what the vendor needs, then you’ll be in a good position to negotiate.
In your discussion, you’ll likely make price comparisons in your efforts to get a deal. You’ll have to propose terms to the vendor, and show consideration for their position in the negotiation. Because things like delivery and quality are so important, you’ll also want to discuss penalties. And, like any negotiation, at some point you’ll probably suggest a compromise. With these skills, you should be able to get a price and terms that work for you.
In today’s business English conversation, we’ll hear Adam, a purchasing manager who works for a company that makes fitness equipment called XFit. He’s been talking with Jenny, a sales rep for a manufacturer that can make pulleys for XFit’s equipment. XFit has chosen Jenny’s company as a vendor, so Adam now has to negotiate the price and terms.
1. What is the first issue that Adam brings up in the negotiation?
2. What does Adam first propose for delivery terms?
3. What is Adam willing to agree to if Jenny agrees to his suggestion about penalties?