10 ways to negotiate a better deal ...and some of the pitfalls to avoid

Stay independent Keep your options open Understand your value Suppliers fear losing you to competing technologies (Because then they lose you, and market share). If you keep your option open they will keep their pencils sharpened.

Keep your options open

Understand your value

Suppliers fear losing you to competing technologies (Because then they lose you, and market share).

If you keep your option open they will keep their pencils sharpened.

Negotiate Don’t be too cosy with fixed suppliers Keep other suppliers in the loop Keep pressing on price Salespeople under pressure will bend But their management will bend more

Don’t be too cosy with fixed suppliers

Keep other suppliers in the loop

Keep pressing on price

Salespeople under pressure will bend

But their management will bend more

Remember the date US companies report quarterly, others half yearly or annually If they are behind on sales every quarter is a year end sale If they are ahead of forecasts (in your territory) you’ll struggle to get a discount

US companies report quarterly, others half yearly or annually

If they are behind on sales every quarter is a year end sale

If they are ahead of forecasts (in your territory) you’ll struggle to get a discount

Check financing options Finance (Leasing) - is generally an alternative that limits your options Some manufacturers heavily subsidise their leasing offers - to lock you to them Look at all options, including independent finance

Finance (Leasing) - is generally an alternative that limits your options

Some manufacturers heavily subsidise their leasing offers - to lock you to them

Look at all options, including independent finance

Software - Its all marginal The cost of 1 extra licence is zero. The cost of 1 million extra licences is zero. The price you pay, if above zero, is just a matter of negotiation

The cost of 1 extra licence is zero. The cost of 1 million extra licences is zero.

The price you pay, if above zero, is just a matter of negotiation

Hardware - For nothing Manufacturers have $Millions of systems to lend. Why not to you?

Manufacturers have $Millions of systems to lend. Why not to you?

Hardware - Age counts End of line hardware is not last year’s model - Its not that old. Great deals abound to clear old lines.

End of line hardware is not last year’s model - Its not that old.

Great deals abound to clear old lines.

Hardware - ‘Grey’ markets Not designated for sale in UK/Ireland World-wide warranty Use as a competitive alternative Check Euro prices across Europe

Not designated for sale in UK/Ireland

World-wide warranty

Use as a competitive alternative

Check Euro prices across Europe

Second Hand Both hardware and software is available 2nd hand. Some just days old (ex demo) Usually with full support options But watch out for running costs

Both hardware and software is available 2nd hand. Some just days old (ex demo)

Usually with full support options

But watch out for running costs

The power of PR If what you are doing is new and interesting OR If you are big and interesting You are a story, but don’t let it go out without asking for a more in return

If what you are doing is new and interesting

OR

If you are big and interesting

You are a story, but don’t let it go out without asking for a more in return

Pitfalls How to virtually guarantee a higher price than necessary!

How to virtually guarantee a higher price than necessary!

Don’t relax Long terms agreements are made to look attractive when you sign ‘Cosiness’ cost you money Suppliers will seek to raise margins and cut costs if you let them Projects will over-run if you are paying ‘Additional’ services will be charged at a premium if you allow it

Long terms agreements are made to look attractive when you sign

‘Cosiness’ cost you money

Suppliers will seek to raise margins and cut costs if you let them

Projects will over-run if you are paying

‘Additional’ services will be charged at a premium if you allow it

Maintain alternatives Suppliers love their competitors to be ruled out - don’t do it Find out - what or who limited your choice

Suppliers love their competitors to be ruled out - don’t do it

Find out - what or who limited your choice

Avoid new products New products are like untested drugs - don’t be a guinea pig The effort of making them work can often swamp the original cost and hold back your business

New products are like untested drugs - don’t be a guinea pig

The effort of making them work can often swamp the original cost and hold back your business

Watch support costs Support are large and often hidden Seek 3rd party support suppliers Sometimes replacements are cheaper than maintenance

Support are large and often hidden

Seek 3rd party support suppliers

Sometimes replacements are cheaper than maintenance