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The less you pay for essential equipment, the more money you get to keep in your business as profit. As a result, it makes sense to want to negotiate with salespeople to pay less than the asking price for anything you need to help your business run like a well-oiled machine.
Not quite the negotiation master you want to be? Here are some helpful tips to start negotiating like a pro:
Research First
Whether you want to buy a used grape harvester for your farm or raw materials for your manufacturing business, research is the first step toward mastering negotiations.
You need to know the typical price range for the item(s) you’re buying. Start by comparing prices from multiple vendors to determine the most competitive. You can then have a benchmark for the minimum and maximum you’re expecting to pay.
It also doesn’t hurt to understand the sellers—learn their reputation, read their customer reviews, and find out if they have inventory they’re trying to clear. The information you learn may be to your advantage.
Understanding your needs can also be part of the information-gathering phase. Consider your preferred specs, features, and non-negotiables.
Set a Firm Budget
If you don’t typically operate with a budget in your business, now might be the right time to create one. A budget will help block salespeople from making you spend more than you can comfortably afford through their upselling tactics.
Instead, when they know you have a set figure in mind, they may be more inclined to tailor a deal to suit it. You may also have an easier time trying to secure your goods for a more competitive price.
Be Strategic With Timing
Most business owners don’t wait until a specific time of the year to buy any equipment or materials they need. Instead, they buy them when they need them. However, being more strategic with timing may make securing competitive pricing easier and save your business money.
For example, many vendors offer better deals at the end of a year or financial quarter when they’re trying to hit their sales targets. If the equipment or materials you’re buying are more in demand at some times of the year than others, aim to purchase during the slower months when businesses may be more eager to cut deals to make sales.
Negotiate Payment Terms
You might have the cash to buy business equipment immediately, but that doesn’t mean you need to hand it all over at once. Instead, it’s often worth at least exploring the possibility of negotiating favorable payment terms that benefit your business.
Talk to vendors or salespeople about extended payment plans and deferred payment options. If you do decide to pay upfront all at once, definitely ask about a discount, since this is a huge benefit for the vendor.
Walk Away
Negotiations don’t always need to lead to a sale. In fact, it can often be better to walk away than to be talked into a deal you know doesn’t suit your best interests.
If a piece of equipment is not priced competitively enough or doesn’t have everything you need to ensure your satisfaction, don’t be afraid to walk away. You may then find a better deal elsewhere, or the seller may take the time to reconsider and get back to you with a better offer.
Getting the best deal on equipment doesn’t always happen naturally. Sometimes, you need to perform research, set a budget, time it right, and be prepared to walk away. Keep these negotiation tricks in mind, and you should secure a great deal very soon.
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