Good Negotiation Paper

I have been a buyer for 20 years for various manufacturing companies. One skill I continue to hone is my negotiations skills. Negotiations are a vital function of a buyer in a company. Profit not only comes from the sale of a product, but also by how much a buyer can negotiate lower prices for the raw materials. Other circumstances where negotiation is favored include: when early supplier involvement is employed, when tooling and setup costs represent a large percentage of the supplier's costs, when production is interrupted frequently for change orders, or when a long time is required to produce the purchased products (Hillstrom, Nov 2001).

In order to be a good negotiator, Preparation is the key component of a successful negotiation strategy (Jensen, K., 2012). A good negotiator will know the value of the product or service before ever starting to negotiate with a supplier. Experts vary on how many different tactics there are to be a good negotiator as a buyer. Here are of some of the tactics I have found most effective:

1.

You should never make the first offer. The other party should always make the first offer. This is very effective because the other party may offer a price that is a much better deal than what you initially had in mind (Steele, 2015).

2. Bundle when you can. Bundling can reduce costs such a reducing shipping costs because the parts will be delivered together rather than separate shipments.

3. Time is on your side- Another great tactic to utilize in negotiations is to use time to your advantage. You should never respond too quickly when negotiating. Responding too quickly will show that you are desperate to close the deal.

4. Walk Away- Most importantly, be willing to walk away if the deal is not