It’s Monday – Back to Business. Did you prepare for your vendor negotiation meeting? Something as simple as a vendor contract or customer terms can significantly impact your profits. If you haven’t mastered this art, consider the following tips before going into a meeting where you need to make a deal:
1. Body Language
Be aware of your non-verbal communication. Do NOT swing in your chair and fidget. It says “I’m nervous, weak, and powerless”. Ensure your body language matches what you are saying. If your words do not line up with your actions, you will come off as untrustworthy.
(Related post: Increase Prices to Grow Your Business)
2. Anticipate the Vendor Negotiation Agenda
Spend time thinking of what the other party will offer and/or question you on. The more organized you are, the more confident you will be in conversation. Practice in the mirror….yes, practice in the mirror….just do it already! It might seem silly at first but can bring things to your attention that you hadn’t seen before.
3. Bring Back-Up
Take a trusted partner or advisor whose sole purpose is to listen. They will be able to provide you with valuable feedback afterward. Have them take notes and keep an unbiased mindset to allow them to provide an opinion on your strategy and the deal itself.
According to Bloomberg Business Week author Carmine Gallo, 55% of communication is body language/eye contact, 38% is vocal, and 7% is actual words spoken. Vendor negotiations aren’t easy, practice makes perfect.
Every circumstance is different, comment for clarification. Cheers to a successful week ahead!
Stacy Saenz, Director of the WHH Controller Program
Stacy is a Fresno State educated MBA who has served in accounting, controller and CFO roles for several local businesses. Her unique talents and experience teach business owners to translate numbers into useful and forward-thinking business decisions. Contact her directly at StacyS@whhcpas.com
