Don’t Sweat the Details – It’s the Direction that Counts

Best practices , Gem , Negotiating with Suppliers , What's Happening in Our Profession Apr 16, 2017 1 Comment

DirectionYears 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.”

To learn more, follow the Negotiating Nugget on Propurchaser.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

One Comments

  1. Steve

    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.

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