What Suppliers Fear When Negotiating?

Actually, I have been in the purchasing department since2010, I most often buy about80% of our needs for the steel construction division.

The aim of selling is to build a long term business relationship, not only once .so Suppliers usually worry for both sides, their own and customer one.

For the supplier, it is important to get the confidence and the trust of the potential customer since he is looking behind the current inquiry, usually the long term plans attract the supplier.

Some suppliers have a doubt whether their products will satisfied the customer needs and how they will be sure about match between demand and supply.

Beside the mentioned issues there is an important point which is financial point. Could the customer pay his liabilities on the date?

On my opinion, the character of the supplier helps to catch an opportunity or avoid a risk ,and we have too much things to worry about it in business,

four supplier negotiation fears and how they can impact your negotiations...

Fear #1: Losing to a competitor. Suppliers hate when potential clients choose a competitor over them. If you make suppliers aware that you are evaluating multiple options, they are more likely to be more aggressive with their pricing.

Fear #2: Having your project canceled due to budget. Organizations and projects usually have finite budgets. When some projects can't be done within a certain budget, they are canceled. Sometimes, you can't play the "I'm talking to other suppliers" card. In those situations, telling suppliers that aggressive pricing is necessary for the project budget to be approved can be an effective alternative.

Fear #3: Failing to get their "foot in the door." Some sales organizations try so hard to land certain accounts. Often, spam filters, gatekeepers, and disinterested buyers make it hard for some suppliers to do business with certain organizations. So, when a desirable client contacts these suppliers, they worry about missing their chance to finally land the client. If it is difficult to get established as a new supplier for your organization, you might be able to use that to your negotiating advantage.

Fear #4: Losing face. When suppliers propose unreasonably high prices and later lower those prices dramatically, they worry about customers perceiving them as greedy and opportunistic. This fear can work against you in a negotiation. So, be careful how you describe an unacceptable price to the supplier who proposed it. Describing it too negatively like "a rip-off," "price gouging," etc. can make a supplier reluctant to prove you right.