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Purchases, Negotiations and You (continued)

Know the Right Moves
Here are top tips for having a successful negotiation regardless of which technology you're shopping for:

• Buy bulk "Boeing consolidated IT operations in 2004. As a result, we were able to aggregate our IT spending and get better pricing," says Griffin.
• Play big "We believe in IT standards, so we do well when we are one of a supplier's ten largest industrial customers," says Griffin.
• Add value "Sometimes the value-added services from the vendor can actually outweigh the core product or service you are buying," says Finley. "Make sure you consider the big picture and not just the deal parts."
• Sweeten the deal "There is more value to the vendor than just the sale," says Bosco. "If you offer to be a showcase account for the vendor or to introduce them to your colleagues at other companies, vendors will often reduce their price in exchange."
• Do your homework "You lose credibility if you try to beat up a vendor with something you are not really knowledgeable about," says Bosco. "Know what you are talking about, know what a fair price is, and know what the industry is moving towards in general before you enter negotiations."
• Study the details "If you have good value data from suppliers, the data will set you free," says Griffin. Get comparative data about competitors, third-party evaluations and comments and verifiable quantitative information. Your knowledge will set you free when you have in-depth, reliable information on which to make your decision.
• Read the contract "Ultimately, the deal is what is written on paper, not what you discussed in negotiations," says Finley. "Read the contract; have legal counsel read the contract. If the paperwork isn't correct, go back to the table and fix it."

Remember that negotiation is a method of problem solving and a means to add much needed products, services and resources to your IT arsenal.

"At the end of the day, both sides have to have exactly what they need to stay in business," says Bosco. "If you force a vendor too low, they won't be there to service your account later and so you will only have hurt yourself." And you'll only find yourself at the bargaining table again -- perhaps way too soon.

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