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 *********.

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