Every Vendor Management system comes complete with its own set of challenges. Throughout any selection process, you’ll need to make sure you’re always on the top of your game throughout the negotiations. VMS organizations are well versed in their negotiation skills, so it’s important to know what mistakes to avoid to prevent long-term headaches after the selection process. Here are four mistakes to avoid in your next negotiation.
Not Enough Confidence
Often, we associate confidence with arrogance in our culture. And it can be a problem, which is why many people veer too far to the other side. But confidence is important and essential when engaging in any sort of negotiation.
Without confidence, you may find yourself agreeing with terms you know are not good for your business, but feel timid about discussing. Find that position of power that doesn’t make you feel uncomfortable, but ensure you’re getting what you need out of the contract.
Look at Line Items as Non-Negotiable
It’s also common to assume there are aspects of any contract that are non-negotiable. There might be fine print or legalese you figure can’t be altered because it’s part of the contract process. But everything in life, and in business, is negotiable.
If you see something that doesn’t fit into your vision of the future, bring it up. And remember, negotiations don’t always mean you get your way, but it will at least open up the discussion and allow you to better understand why these things exist and to make changes to allow them to be comfortable for both parties.
Not Building a Relationships
Another challenge many companies have when negotiating is not building solid relationships with the companies they’re talking to about these services. A relationship should come first, because it can be the bridge between mediocre and exemplary service.
Spend time getting to know your vendor ahead of the negotiation process. They should be doing the same with you and your business to better understand your complete set of needs. A company that does not won’t be a long-term partner in the process.
Talking Too Much or Not Enough
There is also a fine line between negotiation and laying too many cards on the table. It’s important you’re able to share the right amount of information with your VMS, but not so much that they have the power in the negotiations.
In the words of Kenny Rogers, you have to “know when to hold ‘em and know when to fold ‘em.” Communicate, but don’t show your entire hand. And know when in the negotiations to open up with more information to help you get what you need out of the deal.
About Anserteam Workforce Solutions
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