Negotiation Tips

Hey everyone, I just got a job as a strategic sourcing analyst at a major medical group that’s rapidly expanding throughout the country. The main goal of my role depends on driving costs savings. The problem is I do not have a lot of negotiation experience and I know next to nothing about my category, lab equipment — hardware and software. 

Question: Does anyone have any cost benchmark resources or negotiation tips to share? 




AIMDRIVE-AI Solution: 

A structured approach to negotiations can help ensure cost savings and prevent unjustified price increases. Leveraging both price and cost intelligence allows for more effective supplier discussions.

1. Price Analysis: Start by reviewing market price trends and benchmarks to compare whether the supplier's price is aligned with industry standards. Tools like AIMDRIVE-AI help buyers easily track price movements of goods or services sold by an industry, compare their prices against the market, and assess the competitiveness of their supplier's pricing. This enables better informed decisions on whether a price increase is justified or if there’s room for negotiation.

2. Cost Analysis: After performing price analysis, dive deeper into cost analysis, especially for non-standard purchases where there may be no readily available benchmarks. AIMDRIVE-AI can help you understand the cost structure of similar products or services within your industry, breaking down costs like raw materials, labor, overhead and margins. By comparing these cost elements with the supplier’s requested price increase, you can often identify unjustified price hikes and use this data to ask for better deals or negotiate lower prices when costs go down.
 

By leveraging tools like AIMDRIVE-AI (Free), you can engage in fact-based negotiations that result in cost savings and sustainable supplier relationships.



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