Unless you’re in a very fortunate (and unusual) position, money is tight at your practice. Staffing costs, indemnity fees, insurance, utilities, supplies…it seems that outgoings are constantly on the rise. At the same time, income is barely keeping up with inflation.

It’s therefore unsurprising to hear that many practice managers are honing their negotiation skills to drive down purchase costs. Haggling is something that doesn’t come naturally to many people, so here are 17 top tips, in no particular order, to help you secure better value for your practice.

1. Do your research: How much are you spending with suppliers? Have prices increased over time? Do you need everything you’re getting? Armed with this information you can start comparing other suppliers and, crucially, use this information during negotiations to your advantage: ‘So you’re charging 15p a unit? Company B are charging 13p and their price includes delivery. I have their quote here’.

2. Know your requirements: Knowing exactly what you need, and which suppliers you currently use, is key to making the right choice when selecting new suppliers – or even reviewing current ones. With this information you can analyse what you have in place and decide what you want to retire, consolidate or maintain.

3. Be open to other ideas: If the supplier will not budge on price, consider other areas that would benefit you, such as ‘sale or return’, longer credit terms or bulk discounts. Don’t dismiss a deal without considering alternatives.

4. Use payment as a tool: Following on from above, payment terms can be a big bargaining tool. Cash is king, so if you’re in a position to do so, could you get a further discount for paying within seven days, for example?

5. Value means more than price: The lowest price doesn’t always equate to the best value for money. The mantra of ‘buy right, buy once’ rings true when buying for your practice – you may spend 25% less on a cheaper product, but if it only lasts half as long, it’s not a smart buy!

6. Value means more than price, part two: Negotiating the right deal with your suppliers doesn’t necessarily mean getting what you want at the cheapest possible price. You may want to negotiate other factors such as delivery times, payment terms or the quality of the goods.

7. Remember it’s a buyer’s market: Times are tough for suppliers, thanks to economic uncertainty, Brexit, election woes…the list goes on. Remember, therefore, that suppliers need you, so be strong (and reasonable).

8. Play it cool: It is often said that the person that wants something the least, gets the most. So, show interest in the product and nod to its features and benefits but, if possible, show that you have alternative options if these negotiations aren’t successful.

9. Keep those bargaining chips up your sleeve: Do not indicate that there are things you’re prepared to concede or compromise on too early in the negotiations. Try to give the impression you’re approaching the negotiations positively without revealing your position.

10. Don’t be rushed or pressured: Don’t allow pressure to force you into agreeing to a point you’re not happy with. Ask for a break if you need one. Each time you agree to a point, clarify that you’ve understood it correctly and write it down.

11. Be ready to move quickly: Discounts and potential price drops are more likely if you can prove you are serious about doing business and ready to get the ball rolling. Initial negotiations may be vague but once the negotiations progress explain ‘If we can sign on this today, we will be putting in an order on Monday for X,’ or ‘If we can agree on discounts today, we can pay a deposit straight away’.

12. Don’t lose sight of what you want: Stay focussed on your agreed outcome – it can be easy to lose sight during negotiations and you may forget what you were really looking for. For example, a bulk discount is only useful if there is a need for a large quantity of the product. It’s the same with products and features – it’s only worth paying for if the benefits they provide if they add value to your business.

13. Team up: Could you save money by working with neighbouring practices and buying in bulk? If you do this, negotiate split deliveries for orders to ensure you don’t end up becoming the final mile logistics provider! Likewise, are there any local federations or buying groups you can sign up to?

14. Don’t overlook regular bills: Haggling for purchases is one thing, but practices often forget to negotiate process on things like utility bills. While Ofgem rules prohibit negotiations for domestic energy contracts, business energy buyers can negotiate to their heart’s content.

15. Manage the contract: Don’t let your great work haggling be undone in a heartbeat through a lack of monitoring. It’s a good idea to give someone the task of monitoring your suppliers. Doing this avoids the potential for undisclosed price hikes and ensures you can always hold them accountable to what has been negotiated in the contract.

16. Use Practice Index: Don’t forget to use the Practice Index Directory to get no obligation quotes and save up 40%! Click here for more.

17. And finally, relax: According to a PM’s comment in a thread about haggling prices of uniforms – click here to read more – “It’s much easier than you think! You just need to ask! Be polite but firm and you will be amazed what can be achieved.”

What additional negotiating tips can you share? How much have you saved by haggling? Share your comments below or in the forum here.

———–

Topics trending in the forum:
Christmas opening 2019
Should I have to attend?
Am I wrong?
DSP toolkit