Zata Blog

As a smart business person, you’re always protecting your margin. Your ability to negotiate well with your suppliers is key to staying in business.

Here are 3 easy-to-use tactics to make your negotiating more successful.

Wincing: Your first reaction should be to show anguish whenever any price is given. In my family, my wife is the wincer. I have a tendency to try and look like nothing bothers me. As always, she’s right and I’m wrong. Wince. No price is low enough for you to get excited.

Silence: There’s an old maxim in sales; “He who speaks first, loses.” Try just staying quiet when you reach a critical point in the process, such as when someone gives you a concession. The tension that’s created while you sit quietly often results in another concession. I know one restaurateur who I’ve seen stay silent for 2 minutes. Try it. It will save you money.

Third Party Validation (Higher Authority): Always have someone else that you have to check with in order to prevent having to make a decision on the spot. “I’ll have to have my…” accountant, lawyer, partner, board, consultant, wife, husband or even a key employee “look at this first.” Obviously, you don’t want to prolong the negotiation if you’re ready to make a decision, but this tactic can be used for large decisions very effectively. You can also use it to come back and try for a lower price as well. “I spoke with my accountant, he thinks that I’m paying too much.” The best part of this is that it keeps your relationship with the seller intact.

Use these tactics to make more money in your small business.

-Brad Brooks