Negotiation tactics for purchasing: Pay attention to the negotiation process and turn it to your advantage.

Good negotiating tactics for purchasing require that you know the process of price negotiations & Co. Only if you know how a purchasing negotiation is structured can you plan your tactics accordingly and deal appropriately with possible objections from your negotiating partner.

Getting started: Securing negotiating power right at the beginning of the discussion

The start of a negotiation sets the scene. Take the lead in the negotiation and prevent salesmen from using sales tactics right from the start. Ask for all the facts that interest you personally right from the start. By gaining the upper hand directly, you directly clarify the balance of power and make the seller understand that you are the customer with needs and demands that the seller has to fulfil.

Negotiation phase: Implementing the chosen negotiation strategy

Depending on which strategy of representing your negotiating position you choose, the actual negotiation now follows. In the negotiation phase, demands are made, arguments are delivered, concessions are made if necessary, and ideally a solution is found that is acceptable to both sides. In this phase it is important to be flexible and to seek alternative solutions in order to reach an agreement.

End of the negotiation phase: Conclusion of negotiations

In the conclusion phase, the final terms of the agreement are determined and put in writing. Here it is important to clearly define all agreements and ensure that both sides fully understand and accept them.

Basis for your purchasing negotiation tactics: The right negotiation strategy

If you think about which strategy is the best approach for a particular negotiating partner before you start negotiating, you will be better able to use purchasing negotiation tactics during a negotiation meeting.

Pressure-based strategies

Strategies that are designed to force one's own interests on the other side are also called assertive strategies. This type of strategy is based on hard bargaining tactics in purchasing, in which an interlocutor takes a strong position and uses persuasion, pressure and occasionally the threat of possible consequences to try to push through his or her own negotiating goals. This often involves making clear demands in order to put the other side under pressure and persuade them to compromise. Exploiting negotiating power can achieve short-term success in certain situations, but requires careful planning and preparation in advance. In the long term, it can complicate or even damage relationships with the negotiating partner. In addition, it is important to remain flexible and to react to changes if necessary in order to achieve a successful negotiation. After all, your negotiating partner does not always allow himself to be put under pressure.

Defensive strategies: negotiating in partnership

The balance of power has already been clarified before negotiations begin and you find yourself in the weaker position? Perhaps you also have a long-term business relationship with your negotiating partner at heart? With the defensive strategy you primarily protect your own interests and minimise risks and disadvantages. However, be careful not to act too passively and thereby miss important opportunities.

Partnership-based compromise strategy: The middle way to negotiating success

A so-called win-win strategy presupposes that both sides have the goal of finding a joint solution that is advantageous for both parties. It is not just about maximising one's own gain, but rather about finding common interests and creating added value for all parties. This strategy is neither aggressive nor yielding, but rather cooperative. Especially in long-term business relationships, this strategy creates a positive atmosphere and strengthens trust between the parties. However, be careful here not to make too far-reaching concessions and thereby neglect your own interests.

Negotiation tactics in purchasing: 8 negotiation tips to reach your goal

If you are able to formulate and communicate your interests and goals and ultimately achieve them, you have so-called negotiating skills. However, negotiating skills are not everything you need for your negotiating tactics in purchasing. In the following, we will present negotiation tricks that will help you achieve your desired negotiation outcome:

1. the key to success: thorough negotiation preparation.

Negotiation trick number 1: The better prepared you are going into a negotiation, the higher your chances of success. In fact, a large part of a successful negotiation is attributed to good preparation. The following checklist will help you to prepare comprehensively for your meeting:

• What is the subject of the negotiation?
• Who is the seller and what can I find out about this person?
• What is your role? What is the role of your dialogue partner?
• What are your intentions? What are your counterpart's?
• What are your arguments? What are the other negotiator's arguments?
• What negotiation strategy do you want to use and what purchasing negotiation tactics can you use to implement it?
• How much room do you have to negotiate?

2. formulate negotiation goals clearly and keep them in mind

A successful purchasing negotiation is not only based on careful preparation, but also on the formulation of clear objectives. Purchasing negotiations take place between at least two parties who usually pursue a contrary, overriding goal: each negotiating partner wants to obtain the most advantageous conditions for himself - be it in terms of price, delivery date or other conditions. When formulating objectives, the aim is therefore not to achieve a specific price or deadline, but to consider all negotiating items separately and thus pursue sub-objectives.

Always keep these in mind during the negotiation, because they form the basis for your negotiation strategy and consequently for your negotiation tactics in purchasing. Without clear objectives, you offer the other side a target for manipulation. These often lead to you being tempted to make concessions that are unfavourable to you. To maximise your success, your negotiation objectives should therefore be specific, measurable and, above all, realistic. Once the objectives are clearly defined, you can develop a strategy to achieve them, set priorities and weigh up possible concessions.

3. initial situation, body language & respect for the interlocutor: an effective way of conducting the conversation.

Procurement negotiations usually take place in person and require a conversation between the negotiating parties. Therefore, as with all other types of conversations, the 15 Rules of Conversation (LINK TO BLOG ARTICLE) apply. These show how you can communicate in a goal-oriented way by treating your counterpart with respect, using rhetoric and body language and many other aspects.

4. react to contradictions: Dealing with insights in a solution-oriented way

Since you and your negotiating partner are pursuing different goals, it is inevitable in negotiations to receive objections to your own negotiating position and also to raise objections yourself to the arguments of the other side. You can find suitable approaches to dealing with objections in advance. Put yourself in your counterpart's position and think about what arguments and criticisms your counterpart could make of your demands and views. This way you will not be surprised by objections, but will have the perfect counter-argument ready to counter them.

5 Negotiation Tactics Purchasing: Arguing Correctly

When you make demands, you have to support them with valid arguments and convince your counterpart. How do you do that? Find out in our blog article "Successful Arguing" (LINK TO BLOG ARTICLE).

Silence is golden: Listen more than you speak.

It is easy to go into a price negotiation and focus only on what you are going to say. However, the goal is not only to get what you want, but also to help the other side achieve satisfactory negotiation results. This is especially important if you are interested in a long-term business relationship. To do this, you need to know what the other side wants. So you need to listen. Often, not only pure price negotiations are on the agenda. Delivery times, the amount of down payments, discounts such as cash discounts or booking revenues as quickly as possible are also often up for discussion in negotiation situations.

7. voice criticism

As good as a business relationship between two companies is, there are always points of criticism. If you raise them with your business partner, he or she will be forced to react. It is not unusual for buyers to benefit from this and receive special conditions, discounts or the like as compensation.

8. deviate from the course: proceed flexibly in challenging situations

Some negotiating situations are so difficult that if both sides insist on their demands, a stalemate will result. As a general rule, you should be firm and consistent in arguing your point of view in negotiations - especially if you have opted for a pressure-based negotiation strategy. However, if you reach a point where an agreement no longer seems possible, a deviation from your own strategy may well be more expedient. Especially if you already have a long-term business relationship with your negotiating partner or wish to have one, you should not negotiate too hard.

Conclusion: Negotiation tactics in purchasing

Whether it's price negotiations or negotiations on delivery or payment terms - in order to assert your interests and demands as much as possible in your own company's favour, you need to make use of certain tactics. Our 8 negotiation tips will help you to act flexibly within your negotiating leeway and to persuade your counterpart to conclude a contract that is advantageous for you. Negotiation preparation is of particular importance, because it determines the complete negotiation tactics in purchasing. Would you like to learn about negotiation tactics in purchasing in a practical way? In our purchasing negotiation training, we provide you with essential know-how in negotiating in purchasing.