While pricing is an important component of any deal, there are often other components that are also valuable to address.
You’ve done your homework. You decided on the network carrier your company will use, or the brand of computers you want to upgrade to, or the insurance plan you’ll provide your employees. But when you speak to the rep, she’s adamant that the price is set and non-negotiable.
Don’t fret. And don’t accept the first offer. You can still negotiate a deal you can be proud of – you just need to get creative. Read on to learn some value-add tactics to win, even if you can’t negotiate on price.
1. Use your Small Business Credit Card
If the supplier agrees to accept payment by credit card, then you can receive rewards or cash back bonuses for purchases. This is effectively a discount for you off of the purchase price.
2. Stretch out payment terms
Push to see if you can pay in 60 days rather than at the end of the month. By delaying payments and keeping more cash in hand, you can reduce your working capital needs. This is like getting a short term loan for free! However, keep in mind that you can’t stretch out your payment terms for credit card payments without paying interest and/or fees.
3. Early Pay Discounts
A good negotiations rule of thumb is to ask for an unreasonable number of reasonable things!If you have longer payment terms in place (60 days+) often times, companies are willing to work with you and incentivize you to pay early – the most common offer, 2/10 net 30. By paying within the 10-day window, you can save 2% off total invoice cost. If these terms aren’t feasible for all your payments, focus on this tactic for larger invoices where savings can be substantial. Pay attention, some vendors will bend the window, essentially giving you 12 or even 15 days to submit payment.
4. Volume Discounts
Put your bargaining power to work if you have a need or space to buy in bulk. Big Box clubs have cheaper prices for a reason! If 1 item costs $10, can you get 10 for $9 each? Alternatively, if you buy 9 at the regular price, can you get the 10th free? The economics are the same. Maybe you can get 10% off for numbers 11 and higher. You can ask also about rewards programs which might accomplish the same thing in a more formal way.
5. Value-Add Services
What extras can you ask for? Your rep should be able to lengthen the warranty terms, throw in maintenance, servicing or customer support at a discount, or provide free or early delivery.
Even if price reduction isn’t an option, these are a few approaches that you can use to get a better deal. A good negotiations rule of thumb is to ask for an unreasonable number of reasonable things!