I never really thought that it was necessary to think creatively when developing a technical service proposal. With my expertise as a buyer and estimator, as well as being a business owner, I’m lucky that I’m able to write my own contracts and proposals. Even my past bosses admitted that my contracts are pretty intense. But one of our clients seems to be suffering from a Napoleon complex, and it is not pleasant. Hence, the need for creativity (if only to prove my point).
Needless to say, I do not operate as some of the buyers that I work with. I’ve always believed that I am establishing a relationship with each and every vendor, and should treat them as I’d like to be treated. This philosophy has served me well for years, although it doesn’t seem to be very prevalent in many of today’s corporations. After having been told repeatedly that I am not in a position to negotiate, and that I just need to take what they offer, I am now seeing red.
I try not to feel challenged in such circumstances, but I guess that I’m only human. These comments only make me want to prove that any situation is open to negotiations. If you watch the news, you hear that even terrorists want to be invited to the table to negotiate. Huh? Am I missing something here? Why are they allowed to negotiate, but I have to take a contract that my client deems appropriate without negotiations?
So, my answer is “No. Thank you very much. I know that I am offering you a complete and personalized solution that will get you successfully past the finish line. My past performance has indicated that I am always working to create the best outcome for my client, while decreasing their long-term costs because I’m not part of the overhead. I have carefully reviewed your needs, and tailored my services to meet your requirements while being fair and equitable. We will only succeed if we work together.” After they see my proposal, maybe they’ll think twice about their attitude! But this hasn’t been the first time that they’ve done this to us, and I’m sure that it won’t be the last.
Here are some lessons that I’ve learned through my estimating and buying experiences:
1. A good vendor is worth their weight in gold. Bad vendors are everywhere, so I cherish those vendors who always come through for me. My favorite vendors know who they are.
2. Don’t try to low ball your vendor repeatedly. They’ll feel that they’re being taken advantage of, and eventually raise their prices and/or lower their services.
3. Even your vendors are running tight margins. It won’t help your future if you run them all out of business by unfair practices.
4. Establish a network of trusted vendors and distribute the work across that network. Then their prices will be the best that they can offer because they know that there is another potential source. Never single source yourself into the corner, because it’ll cost more to get out of the corner.
5. A title doesn’t justify an attitude. Senior buyer should mean that the person has the experience to know how to properly negotiate with their vendors. Unfortunately, the title seems to give some people a god complex.
6. When a market is unstable, it is not smart to try to manipulate or control your vendor base. Vendors have a long memory and a really large database. Your actions won’t be forgotten.
7. Remember the idiom, “you can catch more flies with honey than vinegar.” It’s especially true when negotiating for what you want.
8. When negotiating, at least use a common baseline for comparison that is recognized by both parties. It never pays to nickel and dime your vendor while using erroneous data. They will catch on and respond to your criticism by pointing out your own inconsistencies. Then nobody wins.
9. Negotiations are not a competition. It’s not written in stone that only one side can win. Now, more than ever, we need to work together to succeed. The only people who will win in the new marketplace are those who create strategic partnerships that adapt to every-changing market dynamics.
Lots of luck with your negotiations! And remember that we’re all in this together.
