Negotiating Better Deals with Suppliers

Tips for Negotiating Better Deals with Suppliers

Trying to get the best deal possible is so important for a small business. As you probably know, as a business owner, profits are hard to come by. If you can somehow squeeze more profit out of every transaction, it increases your likelihood of success. This is especially true if you’re a startup who is fighting tooth and nail for every dollar you can get.

Get multiple price quotes from various vendors

Don’t settle for the first quote someone gives you. It’s a good idea to talk to several vendors to make sure you’re getting the best deal possible. You can always go online and see what other companies are charging for the same products.

Also, don’t be afraid to talk to suppliers from outside of your area. If you live in a small town, doing business with someone in the next big city over might help lower your costs. Suppliers who deal in volume can often times give you better prices than small mom and pop vendors.

Something else that you should consider is buying your items online if possible. Don’t be afraid to order something from the other side of the country, or even from someone in an entirely different country. China is producing all kinds of stuff right now and those companies will ship to you for surprisingly low rates, so it’s best to think outside of the box sometimes if you want the best deal.

Don’t be afraid of negotiating a better price

Negotiating can make people feel uncomfortable because it may seem like you’re trying to pull a fast one on someone. Negotiations are a part of business, and it’s something that you need to get used to. If you settle for the first price anyone gives you, you’re probably not getting the best deal possible.

Tell your supplier that you’ve done research and talked to other suppliers, and they’re willing to give you a better deal. Are they able to give you a better price? If not, ask them if you should go with them rather than their competition. Suppliers usually have at least a little wiggle room when it comes to pricing.

Buy in bulk to save even more money

If possible, buy all of your supplies from one supplier. Ask them if you have bought all your supplies from them, and if they can give you a discount. If you’re only spending a few dollars here and there, don’t expect much. However, if you spend a ton of money with them, you should expect your prices to go down.

A common mistake small businesses make is they will spread themselves too thin and it will cost them too much in the long run. Buy all you can from one supplier and then ask if they can lower the costs for you. Always be a thorn in their side and ask if they can lower the prices if possible.

Build strong relationships with your suppliers

You need to know the people you’re dealing with by name. People who feel like they have a relationship with someone treat them differently. If you come across as a no-name company, you’ll get treated as such. Get to know everyone that you buy from and make sure that they know who you are.

Know their names, their position in the company, and anything else that you can. The stronger the bond that you create with these people, the better deal they’ll give you. No, loner, are you just a client who buys widgets from them? You’re now someone who they visualize with a name. The more you can make yourself come across as an actual person, the less likely they are to overcharge you.

No one likes to screw over someone they consider a friend. You’re using psychology to your advantage here. Also, it’s always a good idea to network with as many people in your business as possible. The person you’re buying from may one day go work for a competitor, and they’ll remember you if they’re able to give you a better deal down the line.


The biggest mistake you’ll ever make is paying full price when you don’t have to. Always leverage your buying power, and don’t be afraid to walk away from a deal. Business can be a contact sport, and if you’re not willing to get dinged a little, you’ll end up paying for it based on your bottom line.

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