The first technique: price bargaining and concession techniques
1. Price bargaining techniques, here are three for reference.
Be picky in every possible way. That is to say, by criticizing the products and pointing out a lot of defects, the morale of the suppliers will be lowered, and the purpose of price reduction may be achieved.
Be patient and instructive. That is to say, they use coaxing to hope that the supplier will provide cheaper prices, guarantee to introduce big customers to him, and provide inducements to soften their stance and lower their prices.
Test your endurance. Persistent, tired and bombarded, and constantly talking over the price, whoever can persevere will be the final winner.
2. Compromise skills
The concession skills that purchasing personnel should know are as follows:
● Make concessions carefully, and let the other party realize that every concession you make is important. It is difficult to make the other party fully expect; and the range of each concession cannot be too large.
● Try to force the other party to make concessions on key issues first, while your own party will give in on secondary aspects or smaller issues under the opponent's fierce request.
● Don’t make unnecessary concessions. Each concession requires the other party to communicate on certain conditions.
● Understand the opponent’s true situation and hold your position based on the opponent’s urgent needs.
● Make a concession plan in advance, and all concessions should be in order. And distinguish conditions with practical value from those without practical value, and use them at different stages and conditions.
The second skill: Bargaining skills
1. Be flexible
In price negotiations, bargaining must be flexible. For purchasing personnel, it is important not to bargain all over the place or bargain for prices; and do not offer the lowest price from the beginning. The former makes people feel like "robbing in broad daylight", while the latter makes people feel passive due to loss of flexibility, making people feel that they are not smart enough, leaving no room for the price negotiation to stop.
2. Breaking the parts into whole parts
Purchasing staff can concentrate the price and turn the parts into whole parts when bargaining. This can create a relative sense of high price in the psychology of the supplier, which will lead to better deals than quoting with a small amount. The main content of this quotation method is to convert the price into a large unit and increase the unit of measurement. For example: change "kilogram" to "ton"; change "two" to "kilogram"; change "month" to "year"; change "day" to "month"; change "hour" to "day"; "seconds" ” is changed to “hour” etc.
3. Pass the test
The so-called "pass the test" means that purchasing personnel should make good use of the bargaining skills of their superiors. Usually suppliers will not take the initiative to reduce prices, and purchasing personnel must fight against all objections. However, the supplier's willingness and extent of price reductions depend on the object of the negotiation. Therefore, if the purchasing staff is not satisfied with the bargaining results, they should ask their superiors to negotiate with the suppliers. When the buyer improves the level of bargaining, the seller feels respected and may agree to increase the price reduction.
If the purchase amount is huge, the purchasing personnel can even request higher-level supervisors (such as the purchasing manager, or even the deputy general manager or general manager) to invite the seller's business director (such as the business manager, etc.) for an interview, or directly Having the buyer's senior executives talk directly to the other party's senior executives often works well. This is because senior executives not only have superb bargaining skills and negotiation skills, but also have great social connections and status. They even have mutual investment or business cooperation relationships with the seller's operators. Therefore, you can usually achieve unexpected bargaining results with just a greeting.
4. Squeezing and price reduction
The so-called squeezing and price reduction is when the buyer has the upper hand and uses coercion to ask the supplier to lower the price without consulting the supplier's opinion. This is usually a trump card used by the seller to improve its profitability when the seller's product sales are poor or the competition is very fierce, resulting in losses and meager profits.
At this time, purchasing personnel usually follow the company's emergency measures and notify suppliers of a certain price reduction starting from a specific date; if the original supplier lacks willingness to cooperate, the source of supply will be changed. Of course, such drastic price reductions will destroy the harmonious relationship between supply and demand; when the market improves, suppliers who have been compromising will either raise their prices "tit for tat" or seek new development, so the supply-demand relationship cannot be maintained for long.
5. Knock on the mountain and shake the tiger
In the price negotiation, cleverly hinting at the crisis of the other party can force the other party to reduce the price.
By hinting at the other party's unfavorable factors, it makes the other party passive on the price issue, which is conducive to gaining recognition of the price you proposed. This is the skill of bargaining. But it must be "pointed to the point", and it must give people a feeling of "helping in times of need", so that suppliers feel that they are not pitying each other and fishing in troubled waters, but sincerely want to cooperate and offer help. Of course, this is help that is beneficial to both parties. Then bargaining is natural.
The third skill: Negotiation skills
1. Play hard to get
Due to the balance of power between buyers and sellers, neither party can win with force, so a battle of wits is required. Purchasing personnel should try to hide their willingness to buy and not clearly reveal their must-buy mentality; otherwise, if the supplier sees through the must-buy situation, the purchasing staff will be at an advantage.
Therefore, at this time, purchasing personnel should adopt a "no or no" attitude and start with a tentative inquiry. If it can be determined that the supplier has a strong willingness to sell, then ask for a lower price, and make the intention to give up immediately or find other sources if it is not allowed. Generally, if the purchaser's bid is too low and the supplier has no willingness to sell, then the supplier will not be willing to sell. The purchasing personnel will be asked to increase the price; if the supplier wants to sell but the profit is too low, the purchasing personnel will be asked to increase the price as appropriate. At this time, if the purchaser's demand is quite urgent, he should be able to agree to a slight price increase and quickly close the deal; if the purchaser's need is not urgent, he can indicate that he will not increase the price, and the supplier will most likely agree to the buyer's low-price request.
2. The difference is shared equally
Due to the bargaining results between buyers and sellers, there is a gap. If both parties refuse to give in, the deal falls through: the purchasing staff cannot obtain the necessary goods, and the supplier loses the opportunity to make profits. Therefore, in order to promote a successful transaction between both parties, the best way is to adopt the "golden mean" approach, that is, each party will bear half of the difference in price negotiated by the two parties.
3. Roundabout tactics
When the supplier has the advantage, frontal bargaining usually does not work well. At this time, roundabout tactics should be adopted to be effective.