The purchasing process covers the period from the first communication with the supplier until the signing of the contract. The way to a successful negotiation with a supplier is a key step in this process and can be as simple as trying to get a discount on specific orders or improve the overall costs of the products.

Negotiating with suppliers has become essential because it allows companies to reduce their costs while increasing their cash flow and profit margin. For this, buyers must negotiate lower rates with suppliers while maintaining or improving quality and service.

A necessary step to optimize your purchases is negotiating with suppliers. Here are some tips that you can implement in your next business negotiations.


Building a lasting relationship with your suppliers is essential. Therefore, it's necessary to communicate and exchange ideas regularly with them. By staying alert to each other's problems and successes, the buyer can obtain excellent bargaining power during meetings.

Many buyers often make the mistake of remaining distant and cold, while, in general, when the person at the front is warm, friendly and smiling, suppliers are more inclined to make deals and negotiations.

Know your value in the eyes of the supplier

Without customers, all businesses die, so you need to determine the potential value that you represent for them.

For many companies, the cost of acquiring a new customer is high. They pay for advertising, marketing, shipping, packaging and many other expenses, just to be able to show a product. So, once there’s a potential big client in front of them, it’s in their best interest to make the necessary negotiations to strengthen that business relationship. For this reason, it’s important that you know your value as a buyer and that you make sure you let the supplier know.

Find mutual gains

It’s important to know the supplier's objectives to identify mutual gains during negotiation. In fact, if you can’t lower the price, you can find other benefits such as a guarantee period, a discount at the end of the month, faster shipping at no extra cost, etc. This can represent very important long-term benefits.

You can also offer to make larger down payments to get a better discount on your part. Suppliers also have accounts receivable just like another business owner, so getting a strong deposit (think over 50%) can be extremely attractive to them and will increase your bargaining power.

Help save money

Treating suppliers as partners is essential to the success of a business. Whenever possible, determine how you can work with your suppliers while saving them money or time. By understanding their business model, you can place orders efficiently, which should reduce costs for everyone. This point can be important in negotiations.

Be honest

Be honest with your suppliers. If you’ve received a more interesting quote from another supplier, let them know, but don’t lie. In the end, everyone in the industry knows each other.

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