How do I negotiate prices and discounts with suppliers?

Show the supplier that you have done your research. You know the features of their products in comparison to other suppliers - don’t be afraid during meetings or negotiations to use this information to your advantage: ‘So you’re charging 15p a unit? Company B are charging 13p and their price includes delivery. I have their quote here.’

If the supplier will not budge on price, consider other areas that would benefit you, such as ‘sale or return’, longer credit terms or bulk discounts. Don’t dismiss a deal without considering alternatives.

Is it possible to move from a customer/supplier relationship to business partners instead? For example you buy goods from the supplier but then as part of the deal the supplier will use your services agree an efficient ordering method to save them administration time in terms of processing. Agreeing to use each other as business testimonies is also a good way in cementing the partnership.

It is often said that the person that wants something the least, gets the most. This is true in terms of negotiations. Show interest in the product and nod to its features and benefits but if possible show that you have alternative options if these negotiations aren’t successful.

Discounts and potential price drops are more likely if you can prove you are serious about doing business and ready to get the ball rolling. Initial negotiations may be vague but once the negotiations progress explain ‘If we can sign on this today, we will be putting in an order on Monday for X,’ or ‘If we can agree on discounts today, we can pay a deposit straight away.’

Stay focussed on your agreed outcome - it can be easy to lose sight during negotiatons and you may forget what your were looking for to begin with! Remember a bulk discount is only useful if there is a need for a large quantity of the product. It's the same with products and features - it is only worth paying for if the benefits they provide if they add value to your business.