5 Negotiation Tips For Keeping Costs Low

For any business owner at any time of the year, it is always good to consider the different ways we can keep costs low.

When the economy feels a bit unstable (as it does now) it is especially important! 

Keeping your costs low may be on the top of your mind right now and if it isn’t something you have considered for your business, now is the BEST time!

But keeping costs low does not necessarily mean just giving up services, sometimes you can actually negotiate to save a buck.

Here are a few of our top negotiation tips for keeping costs low.

 

Change How You Order

Depending on the product or service you are engaging in, vendors may have programs where you receive a discount for ordering in bulk or purchasing an annual subscription at a fraction of the cost.

If you have a product or service you know you will be using for the next year, this can be a great way to get a read on whether you can save some money with this vendor. 

If they do not have any specific program setup, consider asking! This is where your negotiating skills can come in handy. Explain how much you enjoy working with this vendor and see what options are available for some long-term loyalty.

 

Create Friendly Competition

Compare prices among vendors and do a bit of shopping around. When you contact a vendor regarding your plan, it is ok to casually mention you are price sensitive and looking to see what vendors can offer within your budget.

Some may be willing to compete, others may not. Simply letting vendors know you are looking around can create more options for yourself as they work to earn your business.

 

Pay Upfront

Something that may benefit your cash flow strategy and save you some money is by paying for goods or services all upfront. 

For example, say a vendor allows you to pay 50% upfront and 50% upon delivery. Ask if any discount is provided for 100% payment upfront. Sometimes they may have these offerings in the fine print or they may be willing to accommodate your quickness to pay.

 

Don’t Limit Yourself to Vendors

Many of the tips we have talked about reference goods and service vendors - but you can negotiate with credit card companies too! As we mentioned above, shop around for different business credit cards and see what offerings are available. 

Once you have a good idea of your options, consider contacting your current credit card company to see if they can beat your options. Chances are, they will want to keep a good customer and be willing to offer you some competitive rates.

 

Always Start With Your Current Vendors

You may have been taught it is always more expensive to gain another customer rather than keep a current one. It costs businesses money to gain new clients but they know keeping their current ones happy is worth the smaller cost.

Which means you are likely to have more success negotiating with your current vendors than with new ones. 

For example, if you do not like what you are paying for printer paper. You may have more luck negotiating with your current printer paper supplier than seeking out some cost saving deals with a new one. 

I understand just the word ‘negotiate’ can sound intimidating. It may feel awkward or uncomfortable to ask a vendor to lower their prices but consider it a normal part of business! You are fighting for your business, your employees, and your clients. It’s proactive!

As a business owner, you sometimes have to go beyond your comfort zone and have conversations that feel slightly uncomfortable but that is all part of leadership and you are going to do great!

Keep these tips in mind, remember the people you are fighting for, and confidently gain control over your finances!

 

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