In business it mainly comes down to money for most things. How much do you make in a wage? How much does your company turn over? What does the accountant say is the bottom line at the year end? But do you ever think about how much you could be saving?
As someone who takes negoiating for our clients very seriously it comes as second nature now NOT to pay full price for anything! Oh ok it could just be that I’m a Yorkshire woman, born of a Scot that I’m so very tightfisted, but I’m not about to apologise and let me tell you why…
Whenever we set up a new supplier I put them through a rigourous interview process. I usually have them come to my office, I’ll tell them quite openly what I’m doing, in that they will be one of at least 3-5 other companies who are all looking to win the business. I then get them to tell me why I should choose their company over and above the others. I allow them to tell me and then I get down to the heavy negoiating… I then tell them what their competition is offering. So it could be a discount, it could be favourable terms, it could be access to their clients (through them). Whatever it is I always ask for more than I think I can get away with, and I use my golden rule of negoiating…try to get at least 10% off the the price or the equivalent value. If I’m not asking for that at least, then to me I’m not negoiating!
Now this sounds harsh,but to be honest, I run with the maxim – if you don’t ask you simply don’t get!
Don’t stutter or trip delicately around the process of negoiating. Tell them what you want to achieve and tell them what you can get elsewhere, but tell they why you want to use them – and I always flatter them here at this point and suprisingly it always works!
Recently we had 18% off the price of each of two cars we were buying. We have nearly doubled the package that we had in the sponsourship of a rugby team to include the ability to place promo girls outside the stand, tickets for all the matches, extra banners at the ground, extra pages of advertising in the programme brochure as well as various other bits and bobs. This however has now had a knock on effect for our franchisees who sponsor other teams, who have gone back and renegoiated other deals too! So the overall effect with the leverage we have created is significant in terms of savings across the board.
So where can you make savings? I’d always firstly look to negoiate the longest terms possible for the company. I always look for savings to be made on supplies, both in terms of cost and payment terms. I also look to never give a discount off from our end. Harsh? Hmmm probably but that’s business isn’t it? And let’s be honest, whilst ever the money’s in my pocket I’d quite like it to stay that way, thanks!
So, is it a too tight fisted way to make small savings? Ummm yes probably, but then every penny should count and I’ll probably have a million pennys before you do!! 
So start thinking about negoiationg and saving to make your cash flow improve. Be bold or the savings you make will be minimal!
