PURCHASING PROCEDURES - University of Central Lancashire

3. Meeting - Discussion
Commencing the process of discussion, start with items you will find easy to agree
on to build a relationship. Suggest a break if things become difficult or
deadlocked.
4. Tactics
Ask suppliers what you could do to improve your dealings with them, there may be
something important to them which involves little effort on your part. Such
concessions can dramatically improve a supplier‟s impression of the University as a
customer.
Salespeople are highly trained and motivated to fend off their competitors and win
your custom so be on your guard.
Avoid situations where a supplier knows they will get an order. This can occur
when they have the best product to meet our needs, deadline date or because an end
user has advised them!
When undertaking team negotiations ensure that all members are aware of their
role in the negotiations and the tactics to be deployed.
Ask for cost breakdowns to include the profit margin, labour and various product
components. This enables comparison between suppliers, which you can then use
to query any anomalies.
Recognise suppliers strengths and weaknesses in relation to your requirements.
Ensure that your weaknesses are played down, put in a positive light, or not
disclosed at all. Make more of the suppliers weaknesses and less of their strengths.
Make more of your strengths. Think not of how little your concessions mean to you
but of how much they may mean to the supplier.
Reserve your position until you see the full scope of the proposed deal. Never agree
point by point. Using conditional language e.g. if... then perhaps ... can assist you in
this. Try not to concede without gaining a concession from the supplier, always
SOMETHING FOR SOMETHING! Observe how the supplier negotiates and
adjust your tactics accordingly, or choose to take the lead.
5. Meeting - Close
Once agreement has been made summarise the points and method of
implementation. Make an effort to leave the supplier with some satisfaction at the
completion of a negotiation. Such satisfaction may be nothing more than
understanding why it has been necessary for him to make concessions. Aim for a
„win win‟ situation.
Purchasing Procedures December 2011