Negotiating Discounts From Manufacturers

Author: Brian Karas, Published on May 26, 2016

Is there room for just a little more discount in your purchase order?  

This report outlines some common tactics that often work, and do not work, to successfully negotiate additional discounts with manufacturers.

They include the good using:

  • Trades
  • Timing
  • Software
  • Demo Equipment
  • Terms
  • Timeliness

And the bad including:

  • Rationales
  • Promises
  • Complaints

** ***** **** *** **** * ****** **** ******** ** your ******** *****?  

**** ****** ******** **** ****** ******* **** ***** ****, *** do *** ****, ** ************ ********* ********** ********* **** *************.

**** ******* *** **** *****:

  • ******
  • ******
  • ********
  • **** *********
  • *****
  • **********

*** *** *** *********:

  • **********
  • ********
  • **********

[***************]

How *** ****** ***?

****** ****** *** ********** *********, ** *** ** ******* ** understand *** * ************ **** ******.  ****** **** *** *** ********* ******** and *******, *** ******* ******** ** ********* *** ****, *** there *** **** *** ******:

  • **** - **** ****** ** * ********* ******* *****, *** is ********* ******** ** **** ********* **** ******
  • ****** * - ******** ***** *** * *** ** ***-****** dealer
  • ****** * - ******** ***** *** * ******* ******
  • ******* ****** - ******** ***** *** *** ******* *******

************* ********* **** ********* ********* ***** *** ****** ******, *.*., "Bronze", "******", "****", "********", ***.

** *** ************ ***** ****** *** ******* ************, ***** **** be * "*********** *****" ******* **** ***** *** ******* ******* price.

Standard ******** ******

****** * ***** ** ******** **-**% *** ****, *** *** be **** ****** ** *****, **** ********** **** ********* **** another *-**% ** ******** *****. 

************* ******** **** ** * ** * ******* **** **** *** **** *** *********.

** ** ********* ** ********** * ************'* ******* ******** ********* to ********* *** **** ******** ** *********** ********* *** * given *****.  **** ************* **** **** *** **** ***** ******** tiers ***, *** **** ** ***** ** *** *****.

Who *** ******* *********?

** **** ***** * ******** ** ********* ******* *** **** a *% ******** ** **** ** "*** * **** ****".  This ** ***** ******* *** ******* **** ** ** *** Premier *****, *** ***** **** *** ******** **** **** * dedicated ******* *******, *** * ******** ******, ** * ******** can **** * ***** ******** ******* **** **** *** **** becomes ************ *** *** *******.

*** ** ****** ***** ***** ******** *** ***** ******* **% discounts.

********* ****** **% **** ***** **** *** ******** ** * VP ** *****, ** ********* **** *** *** ** ***** persons, ********* ** ********* ********* ** *** *******.

**** ***** ******, ********** ***, *** ******** *** **** ** total *******, *** **** ** ********* *****.  **** ****** ** RSM *** ******* *% *********, **** **** ********* *** ** do **** *** *****, ***** **** *** **** **** ********* a ******** ******* ******* (*** ******* ***********) *** ****.

Trade *** ******** **********

******** *** **** *** ** *** * ******** ** ** offer ********* ******* ******** ** ******.

************* *** ********** ******* *** * **** **** *******.  ** you **** * ********/******* **** ********* **** ****** ** *** manufacturers *******, ** ** ** * *** ********, *** *** customer ** ******* ** ***** ***** **** ** ** **** in * **** *****, **** ****** *** **** ***** ** the ************.

********* ******* ** ** * ********* *** ***** ********* *** also ********.  ****** *********, ****** ******, ****** *** ******** ************** customers *** ***** **** **** *** **** ** **** ** counterparts **** **** **** * ****** ****** ******** ** ******** on ***** ***.  ** *** **** * ******** *** ***** be ******* ** **** ***** ** * ********* *** ****** sales, ** **** ** **** **** ***** **** ****** ***** a ******* ********.  *********, ** * ******** ** ******* ** allow ***** ********* ********* ** **** ** ***** ****(*) ** see * ******* ** ******, **** ** ********-******.

Work **** *** ** ******

**** ****** ****** *** *** ** * ******* ** *** best **** ** **** ****** *** *** *** *********.  **** can ** **** ** *** *******, ** ***, ** **********, but ** *** *** ** ** ****** **** *** *** want *** ***** ** **** *******, **** ***** ****** ** to ***** *** ***** **** ******* ******.  ** *** **** a **** **** ** ****** ** **** ****** *** *********/*** of * *******, **** ** *** *** *** *** **** how **** ***** ****** ** ****** **, *** *** **** better **** ** *** *** * "********" ******** ******* ** trying ** ****** *** ***** *** * ********.

Ask *** ********* ******* ** ********

******** ******** **** **** ***** ********** **** ****, ******* ********* software ******** *** ************ ******** *** ****** ** ********* **** a **** *** ****. *** *******, *** ***** *** ** the *** "*** ******** *** * ****** ***** ******, ** you *** **** ** * ***** ******** * *** ******** get **** ** *** * **** *******."  ****** ** **** the ************ ******* ** ** ** ******* ** ** * post-install ******** *** *** ******** *** ** ******* *** ** reduce **** ******** *** ***** **** ** *** ************.

** **** ******* ****** * ******** ** *********** ****, *** the ************ ** ******* ** ***** **** ** ******** ** their *********.  **** ** ***** **** *** ******** **** ***** in ****, *** ********* * ******** ****** **** **** ***** and ****** *********** ******* **** **** **** *** ****.

Leverage **** *********

**** ********* *** **** ** * **** *********** *****.  ** a **** **** ** ******* ********* ** *** ********* ****, and **** ****** **** *** **** ** ****** * **** system, *** *** *** **** **** ** ** ***** ** no ****.  ** **** ******* ******** *** ************ ***** ** the **** **** ** ****/******* ****, ** **** ** ******* that ** ****.  ***** ****** ***** **** * **** **** budget, *** *** ****** ** **** **** ****** ** **** equipment, ** **** ** ** ** *** * ***-******* ** hot ****.

Negotiate ******* *****

*** ****** **** **** **** **** * **** **** ** complete (*** **** *** ****) *** *** ** **** ** negotiate ******* ******* ***** ** ***** ********.  ***** *** * direct ********, ******** ***** *** **** **** ******* ********.

Pay ** ****

** ******** ** *** ** *** ***** ***********, *** **** bills ** ****.  ** **** ** ****** *** *** ***** person ** ******* * ********, ** *** ***** ********** *** bigger *********, *** ** ********** *** **** *** **** * record ** ******** * ****-*** *******.

BAD - ***** *********

** *** *** "* **** ** ***** * ****** (** 10 ******) ** **** *********** ** **** ****". ** *** are ***** *** * ************ ** **** **** *** *********** make ** **** ***** **** ********(*) *** **** ******* ******* to **** *** ***** ** *********.  **** ******* ** ***** manufacturers ******** ** *** *** **** ******** *********, *** ** prepared ** ******* *** *** ******** ** **** ******* ** price **** ***** ** **** *******/********.

BAD - ****** ********

** *** *** "* **** ** ** ****** *********** ** this ***** ****, *** ***** ** *** **** ** **** get * **** *****".  * ******** **** ** ***** ********* about * **** ** ******** ** ******** **** ** **** checkbook ** *** **** ** *****.  ** *** ***** ******* this, * ****** ******** ***** ** ** *** "* ** discounting ** *** ***** ** **** ***** ****, *** **** the ***** *** *** **** * ***** ** **** ***** I ** ***** ** **** ** ***** ** ****** **** you.".  **** ***** **** *** *** ***** **** **** ** win *** ********, *** **** *** ***** ******* **** **** orders **** **** ***** **** ***.

BAD - ********* ********** **********

** *** **** *** ************ **** *** **** * ******** or * ****** ** **** **** ******* *** ******* *** more ********* ** ******* **** ********, ****** *** **** ***** documentation ** ***** ** * ******* ********** ** ************** *****************.  These ***** ** ******** *** ***** *** ********** ******* *****-***** engagement.

Working **** ************

** *** *** ********** ******* ************, *** *** **** *** the *********** *** * ********, ****** **** ******* ** **** small *******.  ** *** ** ****** ** *** *** *** if **** **** * *********** *********** **** ** ***** ** offer ****** *******.

** *** **** ** ******** ** *****-**** ************, *** ******** distributors *** * ***** *** **** **** ******* **** *** are ******* *** *** **** *********** *******.

**** ************ ***** ************* ******** ** ***** ****/****-****** ******* ** competitive *****. *** **** *********** ** **** *** ***** *** services **** **** **** *** ****, **** ** ***** *** not ****** *********.

 

Comments (7)

* ** ******* ** **** **** *************. *** **** **** knowing *** ********** *** * ******* ****** *********** ** ********? For *******, **** ** ****** ******* **** *** **** ********** is ******* *** ********* ****** **** (**** **** ** ********) versus *** ********* ****** *** (**** ********* ** *****)?

*** *** **** ****, ** * ************ ********* **** ** bid ** * *******, *** *** **** ** ** **** the **** *** **** *******. ************* *** *********** *********** *** be *** ********** ******* *********** ** ****** *** ******* *** and ********** ******* *** **** **** ** ********* **** *** second **** ***** *** ******* **** **** * ****. ********* it ** **** ********* ** **** *** *** **** ******* against *** ** **** * ******** ** ***** ***** ****** a ***** **** *** *** **** **** **** ** ******.

** *****.

** * ************ ***** *** ****** ********* ******* ** *** a *** ****** **** ********** ***** ******.

***** ********** "********" ** **** ****** *** ** ***** * difference.

*** *******, **** ** ****** ******* **** *** **** ********** is ******* *** ********* ****** **** (**** **** ** ********) versus *** ********* ****** *** (**** ********* ** *****)?

********, *** *'* ***** ** *** **** ** ******* ****** that *** "***********" ** ******** **** "**********", ********* ********.

**, *** ** ***** *** ******** ***** **** ** * bloodier ****** **** ***** ** ****, ***** ******* ***** **** great ********* ** ** **** ****** ******** ********.

**** ***** ***** ***** * ******* ** * **** ********* your ********* ** * ****** ****, **** **** ******* **** you ****.

* **** **** ********* ** ***** ********* *** *** ******* a *** ** ***********-

*- ********** ******** **** * ******** *** ****** ** *** it *** **** *** ** *** *** **** **** ********** protection. * **** **** *** ******** ** **** **** *** competative ********* ** ** *** ******** ***** ** * ****** or * ***.

*- **** ******* *********** ********* ** ** ** ****. *****, as ***** ***** **** ***'* **** ** * **** ****** me *** *%- **** *******. *** **** ** * *** want ** **** **** ********* * *******'* **** ** (****** here ** * .***) *** **** *** ********. **** ** I ** ** ** *% ******** *** ****** **% ** win? *** *** ******* *** *** ****** ** ** ** my ** *** ***?

*- ** **** **** **** *** *** ********* **********. ** screw ** *** * **** ** **** ** *****. *** reseller ****** ** *** * **** **** ***. ******* **** purchases (*** **** *** ****) *** ***** ** ** ******** forecast. ****** ** **** ******.

*** ****** **** **, ** *****, ********* *** ****** ** the ***** ** ***** ** * ******** **** *** ** and **'* *** ***** **** ****. ** * ***** ******* renting * ******* *** * ****, * ***** ** **. Still ****** *** **** *** :).

*** ** ***** *************** *** *****, * ***** *** *** following.

****** *****:
** * ****** ***** ******** *** ****, ****** ****** ****** and **** **** **** **** *** *** ******** ********* ***** brand. **** ***** ** ********* *** *********** *** ******* * range ** *******, *** ** ** ********. ****** *********** ** LinkedIn *** ******* ** ********. *** *** ***** *** **** what ***** ** ********. ****** ******** ****** *** *******, ******* and **** *******. **** *** **** *** ******* *** ******* of **** ************ **** ****, ** **** *** **** **** to ****, *** **** ********* ** **** ***** ***** **** the ********* *** ****. ******* **** ******* ***.

** ** ****:
** *** **** **** **** ** *** ***** **** *** meet, **** **** **** *** ***** **** ** ***** ****** or ***** **** ** ***** ** **** ****, **** ***** office. ************/********** ************* *** * ***-*** ******.

** *******:
** *** ******** ** ***** **** ***** **** ********* **** wrong, ** **** **** **** ***** ********** *** **** ***** price. ********** ** * **** ******** *********** **** **** **********. Make **** **** **** *** *** ***** ** ****, *** not ******** ** ***** ******* *********.

**** *****/**********
****** **** ****** *** ********* ** ********* ** ******** *** every ****** *******, * ***** ***** *** **** *****/********** **** dealing **** * ***********.

****, **** *****. * ****** ** ****** ****:

"** * ****** ***** ******** *** ****, ****** ****** ****** and **** **** **** **** *** *** ******** ********* ***** brand."

***** **** ***** *** ** ** ***** ** ** **********, from *** *********** ** ******* ********* *** ********* *********, *********** that *** ****** ***** ********* *** ************* ***** ** **** a ***.

*****'* *** * *** ** *********** ***** **** ** ** integrator *** **** **** (** ***** * *** *****) ** almost ********** ** *** ******* ** *** ************'* **********. ***** the ***/*** *** ***** **** **** *********** *** *** ***** validation **** **** ******* ******* / ******** ** ************* ******, like *********.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Competing Against Tyco IS / JCI on Jul 28, 2017
Mega-integrator Tyco Integrated Security has gotten even bigger with the 2016 merger with Johnson Controls. 110+ integrators told us what they...
Startup Strops Completely Wireless Surveillance Camera Examined on Jul 28, 2017
European startup Strops has developed a surveillance camera that offers up to 6 days of runtime and cellular communications to create a fully...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
Hikvision Distributor Says Hikvision "Top Rated Yet Most Hated" on Jul 12, 2017
The CEO of 2M Solutions, a distributor selling Hikvision cameras under their own as well as Hikvision's brand has publicly declared Hikvision to be...
Best Manufacturer Perks on Jul 07, 2017
A decade ago, the best manufacturer perk was likely a trip on the Pelco jet: But the Pelco jet is long, long, long gone. What types of perks...
Hikvision USA Hires VP of Business Development on Jul 05, 2017
Hikvision USA is expanding again, this time in its drive to move up market to larger integrators and end users. In this note, we analyze...
IndigoVision Raids Avigilon Sales Team on Jul 05, 2017
If you can't beat 'em, hire their employees? This could be described as IndigoVision's most recent strategy to increase market share in North...
Hikvision Hits Record 'ALL PRODUCTS' Sales Run on Jun 30, 2017
Hikvision has a new record. This one is for the most times a video surveillance manufacturer has put all their products on sale in 2 months....
Distributor Favorability Ranked (North America) on Jun 29, 2017
  What North American security / surveillance distributors do integrators favor the most? The least? 150 integrators rated and commented on the...
Hikvision Stock Surges - Doubling In Past Year on Jun 29, 2017
Hikvision's stock, on the China Shenzhen stock exchange, has more than doubled in the past year, vaulting the company's worth to an astounding (for...

Most Recent Industry Reports

Competing Against Tyco IS / JCI on Jul 28, 2017
Mega-integrator Tyco Integrated Security has gotten even bigger with the 2016 merger with Johnson Controls. 110+ integrators told us what they...
Startup Strops Completely Wireless Surveillance Camera Examined on Jul 28, 2017
European startup Strops has developed a surveillance camera that offers up to 6 days of runtime and cellular communications to create a fully...
Babel Street Global Threat Monitoring Tool Examined on Jul 27, 2017
Intelligence on potential threats and terrorist attacks can often be found online hours, or days, before an actual event, particularly in obscure...
Canon Sues Avigilon on Jul 27, 2017
Canon, owner of Axis and Milestone, has sued Avigilon for patent infringement in US court. This is a highly atypical move for Canon, pitting 3 of...
Anixter - Falling Video Prices on Jul 26, 2017
Falling video prices are such a concern that it has become a notable topic for Anixter's financial results and Anixter's executives. In this...
Bosch G-Series Intrusion Tested on Jul 26, 2017
Bosch is one of the biggest names in intrusion, and the company's G-Series panels are their most advanced commercial and high-security panels. But...
Healthy Skepticism for Deep Learning Is Prudent on Jul 26, 2017
The hype for deep learning in video surveillance is accelerating. Between the race to the bottom and dearth of a 'next big thing', certainly pent...
$28M Drone Detection Startup Examined (Dedrone) on Jul 25, 2017
Dedrone has received ~$28M in funding to build what they call an "automatic anti-drone solution", a system to detect drones, and then automatically...
Dahua Suffers Second Major Vulnerability, Silent [Finally Acknowledges] on Jul 25, 2017
Less than 3 months ago, Dahua received DHS ICS-CERT's worst score of 10.0 for their backdoor. Now, Dahua has received another 10.0 score for a new...
Hikvision H.265+ Bullet Tested (2035) on Jul 24, 2017
Continuing our tests of Hikvision's new low cost Value Plus line, we bought and tested the 3MP DS-2CD2035FWD-I, now including H.265+. We shot the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact