This year’s The Apprentice is in full swing and the candidates have already been visiting market stalls and haggling for competitive prices. This week’s episode saw the teams fly to Dubai to source several items for a new hotel – and the team that bought the items at the cheapest prices won. No doubt if you are running a wholesale buying business you will find yourself having to haggle in order to maximise your profit margins. So whether you visit a mall, wholesalers or a market stall, here are some tips on how to negotiate the best price when buying stock.
One of the first things you should do in order to haggle well is assess the competition. Whatever products you are looking to buy, you should find multiple wholesale suppliers for them to ensure you have good knowledge of pricing and how much stock can be bought for. Once you have this knowledge, you are in a much better position to negotiate prices and to get the best deal.
Ask to Speak to the Decision Maker
It is crucial that you speak to the right person when trying to negotiate with pricing. There is little point in spending time negotiating with someone who can’t make decisions. Instead, if you want to get a bargain ensure you ask to speak to the manager or person in charge as they will be able to confirm a price for you.
Negotiating isn’t easy and you won’t get the price you want straight away. Therefore if you want to gain the best deals you need to be persistent and you can’t give up. Spend time building rapport, consider repeat visits to build a working relationship and keep trying.
Offer Repeat Business
If you are struggling to drive prices down then consider offering repeat business. Explain to the supplier that if you are happy with this product purchase then it’s likely you will repeat buy and also promote them as a good supplier – this usually will convince them to lower their prices.