Duvi Honig, Founder and CEO of the As such, when Honig offers tips to small business owners and entrepreneurs about what they should know when negotiating with vendors, it’s clear he knows of what he speaks.
First and foremost, Honig says to be certain all terms of sale are clearly stated and agreed upon by all parties, sale contracts should be in writing. “What you take as a given may not be,” he cautions.
Honig is not only a fan of tangible, written agreements, he’s an advocate of studying non-verbal cues, too.
“Body language is also very important. If you get the feeling a vendor just wants to make a sale, be wary,” he says. Negative body language includes a lack of eye contact or giving the impression of trying to ram a deal down your throat.
But that’s not all.
Before a small business owner starts negotiating with a vendor, they should be certain they are dealing with someone actually equipped with the authority to speak on behalf of the vendor.
Honig says it is imperative for small business owners to do their due diligence when it comes to negotiating with vendors. Matters to consider include:
- The uniqueness of the item
- Where it is coming from
- Method of delivery
- Timeframe for delivery
Honig also warns small business owners not to automatically go with the least expensive vendor. “A cheaper price may mean cheaper service, and that takes away from your business,” he says.
Lastly, Honig says it is imperative to know who a vendor’s competitors are in an effort to find the best price coupled with the most reliable service. However, recognize that referrals may not be the best way to glean the information you’re seeking. That’s because company owners toiling in your same business may purposefully mislead you by suggesting unscrupulous or unreliable vendors.
“Research the market,” says Honig.
Tami Kamin Meyer is an Ohio attorney and writer. She tweets as @girlwithapen.
