negotiation skills

i just got back from a negotiation meeting through video conferencing. though i am applauded as a good negotiator, saving thousands or even hundreds of thousands for the company....i wasn't very happy today as a sudden realization was revealed to me.

we had an internal meeting before calling in the supplier of the coal conveyor belt we were procuring. i asked them their strategy...their response was to obtain whatever discount that can be offered. well, basis of negotiation is very important to me. so, i asked them for the price of the other brands in the market for price benchmarking purposes. alright, they have the figures which was at least 45% higher than what was offered to us. the price offered to us was based on a previous contract. so, i agreed with the strategy.

we called the suppliers in and the power station guys led the discussion in all the technical terms. when it came to commercial negotiation, i waited to see if any would take the lead. i was disappointed in their approach. it was as if they felt guilty asking for the discount. the suppliers explained that with the increase in rubber pricing, they don't think any discount can offered.

this is when i decided to take the lead. i started my standard statement about long term relationship, bulk purchase, previous jobs and other potential jobs in the future... it got me an offer of 1% discount. for me this is enough indication that price can be further negotiated. i requested for a break... did my calculation and requested for a 2.5% discount. my basis was price showing we are getting way below market and the escalating rubber price.

the suppliers obliged my request instantly. it disheartened me because that was also an indication that the price can be further negotiated. my request definitely did not reach the maximum discount that can be offered. the power station guys were happy because they anticipated no discounts at all and it was lower than their previous contract.

i made a mental note that the next time, i would be more shrewed and request for a higher % discount. i really hope to get selected in the pool of negotiators (my proposal which was accepted at the MBO) to be trained though i have already attended some training. hope i get to be in the official list.