In many cases where a reverse auction can be used, we recommend that you (the buyer) reserve what is known as buyer's choice. This means that, although the outcome of the auction is important, it is not necessarily the only factor you will consider when awarding the business.
One option you have, that we see many of our clients do, is bring the top three suppliers in to further discuss the tender opportunity. But what do you do then?
We’ve put together a guide on Face-to-Face negotiation strategy to help assist you with this. You can download the full guide for free by signing up to Market Dojo here, then clicking this link.
This can also be applied should you choose not to run an auction and go straight to the f2f stage of negotiation.
A negotiation can be broken down into three main phases:
Preparation, Discussion & Review
- Set objectives and negotiation margins
- Decide strategy and tactics
The discussion phase consists of three elements:
This is where you declare your objectives and opening positions. This should obviously be a position from which you are prepared to move and thus should be a relatively high, yet sensible, list of demands.
This is the critical point. At the end of this phase you will either have the makings of a final agreement or negotiations will breakdown.
It is also a good time to understand what went well ,what didn’t, and what could be done next time to improve.
The guide itself was put together by the Market Dojo team, combining their 20+ years of procurement experience to bring you a true value-adding document to ramp up your negotiation skills.
For the full strategy behind face-to-face negotiations, simply register (as a host, for free) here first, then click the link to begin the download: