Once you've chosen a supplier for a major business purchase, it's time to negotiate the details: price, features, extras, and additional services. Of course the specifics change from one type of purchase to another, but there are some tried-and-true approaches to negotiating you should always keep in mind.

Have suggestions of your own? Add your comments at the end of this article.

1. Negotiate "with" not "at"

   Some people who claim to be great negotiators head to the bargaining table like a gladiator entering the arena: ready for battle. This forceful approach can occasionally result in short-term savings, but in the long run, you're generally better off negotiating a price that makes both parties happy.

   A supplier who enjoys working with you is more likely to give you better deals on subsequent projects or purchases. Providers who feel like they've been bullied into a bad deal aren't likely to work with you in the future, and if they do, you aren't likely to get any concessions.

2. Ask for more than you expect

   It can be difficult to ask for better deals than you think are realistic, but it's a basic tenet of negotiation. If you name the amount you actually want to pay as a starting point, you've given yourself no room to increase the figure in response to the seller's position. Don't be afraid to ask for the moon, knowing you're not likely to get it.

   On the other hand, don't go overboard: you're not haggling over figs in a market square. Asking for a 10% discount is reasonable, but 50% probably isn't. Be realistic and the supplier will be, too.

3. Keep your perspective

   Don't get too concerned with small differences. If you're spending $5,000, a difference of $100 isn't worth going back and forth about. Some negotiators get too focused on "winning" by getting exactly the result they wanted, when a very small concession would smooth the negotiation considerably.

4. Understand the total price

   You can't be a great negotiator without considering the whole picture. The bottom line price for your initial purchase is just one aspect of most major business purchases: extras like installation, training, maintenance, support, configuration, delivery, and consumables often account for more total costs in the long run.

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   If it's difficult to get the seller to budge on their total cost, switch your tactics and look to get some of these extras included for the same price. Demonstrating your willingness to be flexible can help the supplier be creative in what they offer, as well.

5. Don't make price your only concern

   The more central the purchase is to your business, the more you should step back and consider that long-term impact. Will saving $1,000 on a phone system matter five years from now? Probably not. Getting on the good side of a phone vendor could be beneficial for your business, though.

   It’s usually worth a few dollars extra to ensure a strong ongoing relationship with suppliers. Unless you're buying raw materials or commodities, buying strictly on price is hardly ever a good business decision. While negotiating good prices is essential to getting a good deal, it's just one step in the overall process of becoming a better business buyer.

What do you think of our negotiating tips? What tips of your own would you share? Add a comment below to let us know.

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