The CompTIA MSP Guidebook: Cultivating a Culture of Process E昀케ciency Negotiating With Vendors Vendor negotiation is an essential part of doing business, and it is important to have a strategy in place to ensure success. As an MSP, negotiating with vendors for the best prices and terms can signi昀椀cantly bene昀椀t your bottom line. Here are some best practices to follow when negotiating with vendors. Do Your Research Before entering negotiations with a vendor, it is important to do your research. Understand the market and the pricing of the services you will be purchasing. Knowing the competitive prices and terms can ensure that you get the best deal. It is also important to research the vendor you are negotiating with. Knowing the vendor’s reputation and experience with other customers can give you an edge when negotiating. Set Clear Goals Before beginning negotiations, it is important to have clear goals of what you are looking to achieve. Setting goals can help keep you focused and ensure that you don’t get sidetracked during the negotiation. Goals should include not only price but also the terms of the greement, the quality of service provided and the timeline of the project. Be Flexible When negotiating with vendors, it is important to be 昀氀exible and open to di昀昀erent solutions. Being open to compromise and 昀椀nding solutions that bene昀椀t both parties is often the key to successful negotiations. Try to understand the vendor’s point of view and be willing to negotiate on di昀昀erent aspects of the deal. Communicate Clearly Clear communication is essential for successful negotiations. Make sure that all parties involved are aware of what is being discussed and that everyone’s expectations are being met. Be sure to ask questions and make sure that all points of the negotiation are clear. Get Competitive Bids Competition makes everyone better. The 昀椀rst o昀昀er is never the vendor’s best o昀昀er. Make every bid competitive, and keep driving until the vendors say “no, we are done this is our best and 昀椀nal.” Also negotiate deals at the end of the quarter when the vendor CFOs are likely to approve big concessions. Be Prepared It is important to be prepared for negotiations with vendors. Have all the information you need to make an informed decision and be ready to respond to any questions the vendor may have. Having a clear understanding of the services you are looking to purchase will help ensure that you get the best deal. 28