There comes a time in every entrepreneur’s career that they must sit down and negotiate with someone to make their product sourcing margins work. This is an important skill to master, especially when dealing with product suppliers. Here’s why you should learn this skill and how to use it.
- What it Means to Negotiate
Without this skill you could be run over by your product supplier or other business partners. If you’re not negotiating with your manufacturing supplier, they are probably getting the better end of the deal. The other possibility is that you lose your current supplier and have to go find another which will take time away from running your business. Negotiating means talking with your supplier in a way that shows your confidence and willingness to have a long-term relationship with them.
- Negotiation Tips
Negotiations with clothing manufacturers can be difficult and even be scary, but hopefully this will help when you’re negotiating with a supplier. Here are 4 quick tips for when you’re negotiating.
- Be Professional and Don’t Waste Time:
You’ll be talking to busy people so be brief, calm, cool and collected. Doing this will be appreciated by everyone. When talking to them, whether on the phone or face to face, aim to develop a good relationship. Be polite, don’t overshadow them and try to get in the rhythm of the conversation that they seem comfortable with.
- Come Prepared with a Plan:
Come with a plan, leave with a partner. No plan, no partner. Remember this well because in most instances this will be the case. Before you even talk to them, have a plan of how the two of you will work together, what goals you want to achieve and in what time-frame. What do you expect from them and what should they expect from you? Is this long term or not? These are just some of the questions you should ask yourself and prepare to lay out in an understandable way for the supplier.
That’s not the only thing you’ll need to plan for. Think of any questions your supplier might have and answer all of them in advance, not during the negotiations.
- Get Legal Help or Be Knowledgeable:
Don’t sign anything you don’t fully know about. Most negotiations will end with the signing of a contract, so make sure you fully understand the contract before you commit to anything. These contracts might include:
- Who owns what?
- What kind of rights do each party have?
- In case of a dispute, what is the next course of action?
These are just some of the questions you have to answer and sign off on with a typical contract. If you’re not good with legal issues, then hire some help or prepare to study.
- Don’t Leave All Your Eggs in One Basket:
This serves two purposes and they are to make yourself look like a valuable customer and business partner. Don’t come across as desperate, even if the supplier you’re talking to is the only one you’ve found that will talk to you. No supplier or business partner will want to work with someone who seems desperate and begging for help. They will immediately think, if no one else wants to work with you why would I?
The second reason for this mindset it to prepare you for rejection. You’re probably going to be rejected a lot so don’t get attached to any one supplier. Research as many suppliers as possible, a good number would be five. Having multiple suppliers will make you more confident when negotiating and it will show the suppliers that you are valuable.
With these tips you’re ready to negotiate a great deal for both parties with any suppliers you find. Need any assistance with private label products contact our suppliers today!