13 Jul 2016

5 tips for negotiating with employee benefits suppliers

When it comes to getting a quote and haggling with suppliers for your benefits products and services, it’s only natural that you want to get the best possible deal.

But do you have the negotiating know-how to engage with suppliers effectively, or do you often feel forced into a corner?

Having a good relationship with your contacts means they will want to work harder for you. Here are some top tips to help you get a cracking deal on your employee benefits products and services..

1) Have an end goal in sight

It’s important to have a clear idea of what you want from a negotiation beforehand. Compile a list, putting your priorities in order of importance, such as price, delivery time and payment terms. Decide what you’re not prepared to budge on. If there’s no end goal you’re more likely to panic in the heat of the moment.

When kicking off negotiations, don’t give too much away by letting the supplier know there are things you’re willing to compromise on. Use them as a bargaining tool further into the discussions – ie, “I’ll give you this if you give me that”.

2) Have a Plan B… or even a Plan C

To encourage competitive pricing, get quotes from at least three suppliers and mention to each that you’re talking to other people. With no other options on the table you could appear desperate to make a deal. Having a Plan B can give you more confidence going into a negotiation as you’re not under pressure to sign on the dotted line there and then.

Try issuing a counter offer by pledging to give your potential supplier more business in the future. If there’s no room for manoeuvre you can hold off until another day or walk away altogether knowing you’ve got another offer to fall back on.

3) Don’t get too hung up on price

Getting a good price is important, but it’s not the be all and end all. If it’s a sticking point, you can still negotiate for other things that will help to reduce your expenses, such as:

Money off for buying in bulk
A faster delivery schedule
Reduced deposit
A discount for paying invoices early

4) Sell yourself as an attractive business prospect

If you’re happy with the services of a supplier, make it known that you intend to put a lot of business their way over the longer term. Suppliers appreciate customers who can help them sell as many products as possible, and will work hard to keep you onside. Let them know how much business they can expect from you based on past purchases or a sales projection plan.

5) Build a rapport with your suppliers

Buyers often think they have to remain cool and aloof so they won’t get taken advantage of. But it pays to be warm and friendly with your suppliers and spend some time getting to know them on a personal level. If they like you they’ll be more inclined to do a deal with you – it’s as simple as that.

Meet your contacts in person to see how their company works and how their business supplies can benefit you, and keep in regular contact.
Place orders in good time, be clear about deadlines and pay on time.
Keep an eye out for any opportunities you can put their way, and they will hopefully do the same for you.

This article was provided by Unum.