Do you need to write a letter to negotiate the best price from a vendor? A meeting might not always be possible so you have to develop a way with words to save those pennies.
Here is a list of 5 tips to help write your way to a discount from your vendor.
Use the 3 P’s
The tone throughout the letter should be Positive, Polite and Professional.
Use the right words. Instead of saying something like, “your price is too high”, try saying “We have a bit of a tight budget but we value our relationship. Is there anything that can be done to create a bit more value in the relationship without overextending you too much?”
Don’t you think a vendor would give your request a little more consideration if things were phrased using the 3 P’s? Even if you do not end up working with them, at least you would have left them with a great impression.
Appeal to Your Vendor’s Motivations
There is a fourth P you can use in your negotiation letter but you must be creative – be Personal.
Research your vendors carefully before writing your letter. This will help you to come up with a strategy on how to approach them for discounts. You will see what is important to them.
Perhaps they are looking for a customer who would pay upfront. Or perhaps they would want some feedback and reviews of their service in exchange for a discount.
Be Clear and Concise
No one likes to have their time wasted so get straight to the point early on in your letter. Explain your position and request as clearly and concisely as possible.
Don’t over-explain or add unnecessary fluff you think will help your case. Drawing things out may hurt your case. It will make the vendor hesitant to work with you if it seems like you do not know what you want.
Focus on Value rather than Cost
While getting the best price is amazing, remember that value is more important than cost.
Don’t try to undercut the vendor’s prices but try to see if the scope of the service could expand.
Don’t stress too much on price and discounts as this may make your vendors more hesitant to reduce their costs. Instead, try to find out what added benefits they wouldn’t mind throwing in at the same price.
And value should go both ways so don’t focus only on the value they can bring to you. Show them how you can bring value to them.
Give them some brief points on how you can expose them to new customers and how you can lower their risks. You could become a loyal client.
Show them how they can benefit too. For example, if they offer you a better price then it would allow you to increase the size of your orders.
State Past and Future Transactions
If you have already used the vendor, make sure you remind them of your interaction to show you are a reliable customer. If you have plans to expand your business, mention it briefly as well so that they can see you as a prospect for future business.
It is easier for vendors to maintain long-term relationships with trustworthy clients than to find new clients. They will be more willing to throw in more value to keep you as a customer.
Of course, if you get the option of having an in-person meeting with a vendor, then go for it.
But these are just 5 tips that can help you negotiate a better price with a vendor if this is the mechanism you have available.
So go ahead, use your words wisely!
Related: 5 Creative Ways to Get More Clients
So are you ready to use these tips when writing a letter for a vendor discount? Are there any other tips you would like to share? Let us know in the comments!