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Have your IT personnel alter or modify your purchasing software so that when the purchasing agent is on the telephone with a major vendor about to place an order he can look at the screen very easily, see what has been purchased this year and last year then opt to say something similar to the following examples to conjure up a better price.
Examples of discussions with vendors:
- Example #1: Harry, today I need to order another truckload of (part number/product/etc.) but I need your help on the cost. Our system says we have bought about $480,000 so far this year. That is over 30% more than last year’s purchases. We have had good service from you guys and obviously I want to keep it increasing. I am glad to do business with you but now I need you to help me obtain a better price in order for us to cut costs starting on this load. If you need to go ask about my request, please do so and call me back this afternoon after lunch. Tell me how we can derive a better price so I can get it ordered today. Please let me know later if you can help me on this price.
- Example #2: Joseph, this is Hank at ABC Company. We have narrowed our vendor list for this year and are now down to three. We must have more than one, but I want to increase my purchases with you beyond the $575,000 ordered so far this year. We are up by $100,000 already from the previous year’s total so you should know we are growing. The thing I need to ask this time is to get a better price on this product going forward when I buy it in bulk. This customer of mine is an account that is tenuous at best and is asking us for some financial relief today. We are doing what we can, but now are not sure if we can hold on to this account given your current price. I need your assistance on cutting this cost. Tell me how to help you get me some relief. Call me back if you need to go check on my request.
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