How to Negotiate with Suppliers on Price

How to Negotiate with Suppliers on Price

Over the last couple of quarters, suppliers have been asking for price increases (and they just keep coming)… Rising material prices, fluctuating exchange rates, and higher logistic costs – have recently been the typical culprits.

CMD President Paul Stepanek and CMD Operations Leader Michelle Liu were recently featured in IndustryWeek with a summary of negotiating tactics used we’ve used over the years. Among the many questions we get from clients, this one is coming up lately more than any other.

To summarize, the seven tips are: 

  1. Listen
  2. Unpack the BOM
  3. Carve out SKUs
  4. Make it temporary
  5. Determine timing
  6. Be a historian
  7. Explain your costs

 

Interested in getting into the details of these tips? If so, Read the article on IndustryWeek. You’ll be glad you did. 

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