On what basis do you negotiate the prices of products purchased? - Supplier rates - Competition Price - Your own costs objectives

The points mentioned are very important but your costs are hellier

Thanks for the Invite.

In my opinion all of the above three aspects are very important while negotiating the price. As at first you need to know the actual costs incurred while producing it and stating your objective price. After that, looking at the competition and why this particular product is distinctive and suits you best and finally the supplier price, and negotiating an agreed price which benefits both.

All three points are essential in negotiating the product price. but first comes own cost.

This decision making comes sequentially.

First, own cost objectives - set you own price targets & its overall impact including expected ROI.

Then comes, Supplier rates - whether rate quoted by supplier is within bandwidth. Specifications, T&C; other commitments come here.

Last but not least, obviously Competition price - To evaluate/validate own set price & supplier's price. Tool to negotiate with supplier to get advantageous position.

Thanks

I prefer to wait for more answers from colleagues

Regards

I think all aspects must be considered whenever pricing of products and services is concerned.

thanks!

I would negotiate my prices as per competition and other products available in the market. somehow sometime we can go with product purchased negotiation also to make a permanent customer but it worries time to time

!.Zero Base Costing is prepared and Supplier's Quote is negotiated on cost break-up element wise and ultimate prise is settled.

2. besides Costing & Negotiations, Market Testing is also to be done, it also could optimize the BOPs prices.

Based on these 2 practices and keeping the organizational strategies in mind finalisation of prices and POs placements could be carried out.