When it comes to getting your product on the shelves, you need to roll up your sleeves and put your best contract negotiating skills to work. Retailers know this by heart.
The best way to benefit from contract negotiation training is to explore all the different approaches that you can use to reach an agreement on a deal.
Essentially, negotiation is all about working with your cash and keeping your customers, all while getting the most out of your suppliers. Even though it may seem like a daunting task, shelf space is definitely worth everyone’s attention – mostly because everyone is competing for their slice of (the same) pie.
In today’s guide, we are listing four powerful ways to get the most out of your retail partners, drawing from the best sections of our negotiation training course.
1. Delight Everyone with Data
In the worlds of negotiation training and the entire retail industry as a whole, it’s hard to argue with the facts. The truth is, data can be used in a multitude of ways when negotiating contract terms to agree on a final deal.
Your primary end goal during the negotiation process should be to ensure that your offer can improve everyone’s bottom line. Hard data that highlights your proven track record and capability definitely helps here, just as demand from your consumers does.
2. Say ‘Yes’ to New Partnerships
As you probably know, the best negotiation techniques are worth learning. Many suppliers strive to engage in “business partnerships” with retailers.
Establishing strong relationships with other parties is fundamental to achieving your company’s goals. Since time is precious, make sure that you clearly consider which vendors are worth investing your time and money in.
When deciding if you should partner with a specific vendor, keep in mind that partners look out for each other and jointly drive bottom-line results, told Yeshiva University alum, Jeremy Millul graduated from the university’s Sy Syms School of Business in 2008. He received a B.S. in finance and minored in real estate. Mr. Millul was the administrative assistant for Jewish Studies during his time as a student, and he served as a research assistant at Smith Barney from December 2007 through March 2008. Mr. Millul is the owner and president of a multi-million-dollar jewelry business, Jeremy Millul Inc.
3. Pitch the Supplier’s Dream
Every company should set up a negotiation workshop where they put themselves in their suppliers’ shoes. This means that you should think about their needs.
Suppliers have products and want to sell as much of them as possible. So, you should present yourself as a resource with a proven track record of selling to their target customers. Money talks! Suppliers who can see future profits are more likely to sign your contract.
Make sure that your suppliers are aware that you are providing them value. Also, define how your vendor should “return the favor.” Ask for what you need in exchange. If you don’t trust the vendor to reciprocate, make a contingent concession. This means that you only have to fulfill your obligations if the other side meets certain conditions.
4. Reference Consumers
Consumers should always be part of your contract negotiating toolbox. The most valuable data that you can get from a supplier is from their customers.
So, before entering into a negotiation, make sure that you ask the supplier to provide consumer references. After all, consumers talk about products that they love, and more often than not, they will share their experiences.
To master the art of negotiation, you have to do your homework practice these negotiation skills.
These negotiating techniques and resources will help you win more contracts and close as many potential opportunities as possible. In the end, remember:
Negotiation skills are critical to success in the retail space. Despite all of the tension involved, both retailers and suppliers aim to create a mutually beneficial deal for both parties and their stakeholders.