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Onsite Seminar

Negotiations & Collaboration

Mastering Price Negotiations

Acquire the essential skills you need to negotiate price in a global environment. Stay ahead of global competition and gain the benefits of securing effective price agreements with your suppliers. You will engage in a structured dialogue, case analysis, as well as, Internet research while exploring the elements of a rigorous, systematic process to help you achieve your price negotiation goals.

Who Should Attend

Supply management professionals who negotiate prices for goods or services and would like to improve their negotiation skills.

You Will Learn
  • A systematic process for information assembly and analysis
  • How suppliers determine prices
  • How and where to locate pricing benchmarks
  • How to develop objectives and formulate strategy
  • How to incorporate your research into the negotiation process
Course Outline
  1. Suppliers' Price Development Process
    1. Break-even analysis
    2. Supplier pricing strategies
  2. Negotiation defined
    1. Different negotiation philosophies and styles
  3. Preparation for price negotiations
    1. Price evaluation methods
    2. Price analysis
    3. Price benchmarks
    4. Supplier cost analysis
    5. When to do a cost analysis
    6. Cost elements and drivers
    7. How to do a cost analysis
  4. Price Evaluation Example
    1. Practice in locating material and labor cost information
    2. Practice in applying the analysis of material and labor costs
    3. The application of data from indexes
    4. Practice in locating financial data
    5. Price/cost analysis exercise
  5. How to manage price escalation requests
    1. Developing options and bundling for offers
    2. Determining walk-away alternatives (BATNA)
    3. How to assess strengths and leverage for all parties
    4. Identifying and applying objective standards to establish legitimacy
  6. Conducting the negotiation
    1. How to confirm the other party's walk-away alternative
    2. How to recognize unfair tactics/styles and counteract them