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4 September 2012 | Rebecca Ellinor
It’s important to concede some points during a negotiation and not simply focus on price, according to a former CPO.
Mike Inman, previously a head of global procurement for MGM Resorts International and IAC/InterActiveCorp and now a professional negotiation instructor and advisor with TableForce, said: “While you need competitive drive, sometimes being too competitive in the short term leads to unintended long-term negative consequences.”
Inman was speaking to SM ahead of his presentation at the CIPS Annual Conference on 4 October on ‘transforming your negotiating success’.
Asked about the common mistakes made by negotiators, Inman said: “One of the toughest negotiators I ever had the pleasure of working with had one flaw in their game: they had to win every single deal point.”
He said this approach can take a long time and makes suppliers less inclined to provide extra value once a deal is in place.
Second, he said, there’s no harm in providers making a healthy margin. “The supplier is competing with the market for the maximum amount of revenue their product or service commands and their own internal costs drive the margin calculation. Negotiating using relative profit margins has nothing to do with financial reality.”
For more guidance on what you can do to help your organisation transform your negotiation success, book now to attend CIPS Annual Conference at Kings Place in London, 4 October.
☛ See the full feature with Mike Inman in the September issue of SM