Purchasing Agent how-to
How to Negotiate with a Supplier
Good negotiations create value for both sides.
Quick answer
Good negotiations create value for both sides. In short: research; set; open, then complete the remaining steps below.
Step by step
Research market prices and alternatives.
Set goals and walk-away points.
Open with questions about the supplier’s needs.
Trade concessions such as volume or longer terms.
Summarize agreements.
Put terms in writing.
Safety reminders for purchasing agents
- Follow ethics rules on gifts and conflicts of interest
- Protect confidential pricing data
- Verify suppliers to prevent fraud
- Follow procurement laws for public purchasing
Key terms
RFQ · RFP · Purchase order (PO) · Lead time · Total cost of ownership · Sole source: see the full purchasing agent glossary.