Vendor Negotiation

Vendor Negotiation

Vendor: I am sorry to inform you that your order for spring patio deliveries will be delayed due to unavoidable circumstances. Problems in the shipment area mean the order will be delayed for one month.

Me: That is quite unfortunate. My operations rely on patios, and I believe I told you that. Such delays will affect my activities from now on.

Vendor: I understand your predicament, dear customer. However, our hands are tied now, and are short of options. However, we would love to hear what we can do to make it up to you.

Me: Well, in that case, I would like to know if you can give me a discount on the purchase price. Such a discount will cover the losses I might incur due to the delay.

Vendor: We can negotiate the initial markup price once the shipment arrives. However, we must wait until the delivery arrives before engaging you.

Me:  Fair enough. I have another concern in light of the delay. Now that you offered my competitor patio deliveries, which I could not access, would you please delay the delivery for the competitor and deliver them all at once?

Vendor: Your concerns are legitimate. We have informed your competition that he has to wait until the delivery is ready. We rejected their request for advanced delivery.

Me: Good. Please also remember to ensure that you deliver the right quality. Please avoid late deliveries in the future because they cause sales losses, customer dissatisfaction, and overall business inefficiency.

Vendor: We have noted your concerns with the weight they deserve. We hope you will accept our request for more shelf space at your store. Thank you!

Negotiating Techniques and Structured Steps Used

Among the earliest stages of a negotiation process is information exchange. Both parties lay their claims at this stage (Perks & Oosthuizen, 2013). Also, participants in a negotiation express their concerns and interests. As evident in the conversation above, none of us interrupted one another as we presented our concerns. Allowing one another to express their concerns without interruption goes a long way toward building trust. Another essential stage is to bargain and problem-solve. In the conversation above, I negotiated for a discount from the vendor to make up for the delays. Bargaining eliminates the inherent conflicting interests in a negotiation process.

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Reference

Perks, P. S., & Oosthuizen, N. (2013). Exploring supplier negotiation best practices and supplier relationships strategies in South Africa. Review of Integrative Business and Economics Research, 2(1), 333.

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In this assignment, you will apply a communication model to structure a vendor negotiation conversation, build an outline, and write the dialogue.

Read the following case study scenario:

You are the buyer at Denigee’s Outdoor Superstore, a nationwide chain of home and patio stores. The vendor representative from “Patio Expressions” calls you to tell you that this month’s primary delivery of Spring patio accessories will be a month late due to a problem with shipping. The vendor wants an extension on the purchase order so he can deliver the merchandise when it arrives at his distribution center.

Instructions

1. Review the details of the case study scenario in the document below. Use the information to analyze your business position. Think about what you need to consider, what you need to communicate, and what you need to negotiate. In this scenario, you benefit from knowing more about the vendor’s position than you would in a “real life” negotiation. Use it to your advantage.

• Vendor Negotiation Information: Case Study

1. Apply what you’ve learned to develop an entire dialogue. Use the negotiating techniques you learned, including active listening and body language, to create your negotiation conversation.
2. In 275 words, double-spaced, present your dialogue and explain how the negotiating techniques and structured steps in your vendor conversation will result in the predicted outcomes.