Are you getting the best prices? Not unless you prepare for negotiations early on, says trainer Stephen Lovatt – and that rarely happens.
Lovatt asked delegates at the CIPS South Yorkshire branch to estimate the population of Kazakhstan. By giving an anchor – higher or lower than 49m – and showing a large map of the country, he took control and preconditioned their answers.
In a traditional procurement process model, the buyer issues an invitation for the supplier to set the market price, which then establishes an anchor price around which negotiations take place. So, asks Lovatt, are we in a bad habit of framing and conditioning anchor points without thinking ahead to the negotiations stage and considering the potential impact on the bids?