Getting the best deal in business is often portrayed as one party triumphing over another. Or rather, one party securing a deal that benefits them at the expense of the other party. In actuality, a good business deal should benefit everyone, but securing a good deal isn’t always easy. That’s why we’ve compiled our top pieces of advice for how to get the best deal in business.
A good deal should have the best long-term returns for all involved. If it won’t benefit your business further down the line, then you need to renegotiate, and if you’re about to propose a deal to a company or contractor, ask yourself if it will benefit them in the long-term. If the deal works more favourably for one party’s long-term returns over another’s, or benefits neither party’s long-term returns, then it’s not a good deal.
Every party enters into a contract for very different reasons. Beyond the opportunity to make more money, motivations for entering into a contract could include marketing opportunities, flexibility or employee well-being, to name a few. It’s essential to identify the real interests of everyone involved in the deal at hand, so that you can tailor your approach, offers and phrasing based on that and so that you can understand why certain points or ideas you share may be rejected – it’s likely not a personal affront, it just doesn’t benefit the other party’s motivations.
It’s essential that you decipher what room for risk exists in a deal. Assess your best alternative. What will happen if you don’t win the contract or enter into this deal? If your business is depending on the deal, then you have no room to take big risks, in case it puts the chances of a deal being made in jeopardy. If your best alternative is that your business won’t be largely impacted by not making a deal, then you have more of an opportunity to take risks, suggest things the other party may not have considered, or suggest better terms for yourself/your business.
No two business deals are exactly the same but don’t be afraid to get creative when it comes to dealmaking. Pull in resources and use them in unusual ways, make unique suggestions and show enthusiasm about the partnership you’re about to enter into.
While it’s good to be creative, the deal itself should never be complicated. Make sure that things remain simple, easy to follow and that the terms are clear enough to be understood by everyone involved. Cultivate an environment of openness and communication, where nothing is left to interpretation. Avoid additions to and remove aspects of a deal that overcomplicates the matter unnecessarily, as this can lead to frustration, confusion and create a large margin for error and misunderstandings, which won’t help either party and could harm the possibility of future deals being made together.
Foster personal connections with the people you are trying to strike a deal with. This will help make the lines of communication more open and encourages transparency, strengthens the deal, helps the alliance between the parties involved and makes further deals together both more likely and easier to navigate.
At NJG, we are here to reduce the potential stress associated with negotiating. We do the hard work for you and our sustainable and robust cost reduction solutions allow you to make an informed choice to make sure you get the best deal possible. Get in touch with us today for more information, call us on 01257 232602 or email firstname.lastname@example.org.
At NJG Purchasing Services Ltd we believe that there are many basic tips and tricks which can help to reduce your company overheads with almost immediate effect.
We have produced an ebook to guide you through some of the more basic methods which you can implement alongside using NJG Purchasing Services.
As a procurement specialist for more than 30 years, I get the frustrations you face. Growing a business is complex and challenging, but don’t let high costs be your downfall.
No matter what size your business, any inefficiencies you have now will only get bigger as you grow. Getting lean and resourceful as early as possible, will enable you to build an efficient and streamlined business for the future…
We understand how frustrating it is when you know your overheads are high, but you don’t have the resources or expertise to get them down.
That’s why we do it all for you.