In the last 2 articles, we have visited two case studies of times that I have been able to use my negotiation training and experience to reach a desired results. Today I will mention the keys to negotiation with an ongoing vendor. For the past several years, I have used a vendor that accounts for a large portion of our business. Our company has a great relationship with this vendor and we renew our contract. With an ongoing relationship, the RELATIONSHIP is the key. Sure each party may feel external pressures from those higher up in the negotiations, but with a strong business relationship, each party will know that a desired result will eventually be reached.
1. Discuss new issues that may come up in the new contract throughout the year, not just when the contract is up. When constant contact is setup between parties, there will be a mutual desire to work on the deal continuously, rather than just during contract negotiations.
2. Invite ideas to grow relationship in the new deal. This could be new areas of opportunity or expertise provided by a vendor, or a part of the contract that may not have been negotiated before, but could provide a larger piece of the pie for both parties.
3. Have several areas that you are willing to concede and those that you will not move on. If you have mapped out your negotiation in your mind and on paper, then you will be able to provide instant solutions to potential hurdles without having to temporarily break negotiations.
4. Look for ways to close the deal prior to the ultimate deadline. If you drag out the negotiation and change your mind on previously agreed upon portions of the contract, then you may damage future relations.
5. Don't make it a competition. With a long term partnership you want the other party to succeed. Don't look for ways to lower your partner's portion of the pie, but rather look for ways to increase both sides of the pie. Do you best to not be like the NBA and NFL, keep your product rolling out to the consumers and don't damage relations of your consumer.
The way we perceive and act on things is based largely upon past experiences. Make sure to keep the experiences you have with a long term vendor mostly positive, so that when you need them your vendor will be willing to assist you with your needs.
