Don’t Sweat the Details – It’s the Direction that Counts
Posted: May 24th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers, What's Happening in Our Profession | Tags: best practice, negotiation, steel, supplier | 1 Comment »
Years ago, while working for Green Giant, I phoned our steel can sales rep to ask for a 4% reduction. We had information suggesting steel prices had fallen 8%.
He certainly wasn’t very happy and, as expected, argued against any decrease.
“Are you saying you’re still purchasing steel at the same price as before?” I asked. “That would be surprising.”
“Um… no, of course not”, he said, “but look – let me get back to you.”
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While jumping immediately to take the 3% in principle is flawed, it is valid to accept the directional price shift and hold the trump card regarding less volatility in the specialty steel pricing.
Typically, I review market pricing monthly when the prevailing index is released. I do not request adjustments (up or down) that frequently but it is good to be armed with information in the event I approached for an increase.