Top 3 Negotiating Tips
We find that many of our clients have fallen into a common trap: a poorly negotiated contract. A poorly negotiated deal will work against you whether it’s for a lease, laser, software, skincare product, job opportunity and more.
In order to avoid the damage a poorly negotiated contract can bring, always keep in mind the following top 3 negotiating tips:
1. Make sure the details are written out ahead of time in the contract. Also, make sure you ask for more than what is brought to the table.
For example, with vendors, it is best to spell things out. This includes spelling things out for samples, financing, rebates, details of returning products, cooperative advertising, shipping/handling and more. Be sure to negotiate these things early in the relationship and consider questions such as the following:
- Are there ways the supplier can break down travel sizes into smaller samples for your clients?
- Is there an extended 60-90 day financing policy that you can leverage (when financing vs buying with cash)?
- Can you pay with a credit card to allow you an extra 30-45 days to pay the balance in full?
- Is their a discount when you pay within 10 days of the invoice (we’ve commonly seen 2-10% discounts)?
- Can you get a better price or earn rebates with higher purchase volume?
- Who is responsible for postage/freight to and from the facility for product returns? Can it be the vendor?
- Are there funds supplied by your vendor for marketing costs for the product?
- Can you negotiate the shipping and handling fees which can be a minimum of 10% on your order?
Exercise your right to negotiate and don’t be afraid to ask for more. In the end, the outcome can be a “no” from the vendor or hundreds to thousands of dollars gained in profit.
2. Do your due diligence.
Know the level of authority of the person you’re negotiating with. Is there an owner, manager or someone high up the chain who has greater authority to help you get what you want? Most salespeople only have a limited amount of authority when it comes to discounting, financing, additional offerings, etc. Insist on speaking with someone who has the authority to negotiate to your satisfaction. In addition, be sure to know the facts behind your requests. When it comes to a strong negotiation, the more facts you bring, the more power you have. Educate yourself well on the service/product, how it works, how it would benefit your practice, prices and the vendor’s competition. Know that facts will always beat an opinion, so facts are key.
3. Don’t be afraid to walk away from the deal.
If you’re not able to secure exactly what makes sense for you, move on. Be sure to let the other party know this. Don’t allow yourself to become bitter from a negotiation that wasn’t to your satisfaction. It is alright to walk away.
For more information on what and how you can negotiate, check out these articles from our founding partner, Jay Shorr:
- Click here to read “How to Negotiate with Vendors” in Skin Inc. magazine
- Click here to read “Top 6 Negotiating Tips” in Plastic Surgery Practice magazine
And remember, we’re always happy to help you with your negotiation needs! Click here to schedule your free consult with our experts, Jay Shorr and Mara Shorr.
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About Shorr Solutions:
Shorr Solutions is an award-winning practice management consulting company with offices in South and Central Florida. We work with aesthetic medical practices in all 50 states of the U.S. to help them strengthen the operational, financial, and administrative health of their business. With decades of industry experience, our father-daughter partners, Jay Shorr and Mara Shorr, lead our knowledgeable team of experts to assist practices in the aesthetic medical fields increase efficiency, increase revenue, and decrease their costs.
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