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

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2017/04/06
Mustafa Dardir
by Mustafa Dardir , مدير مالي , كرستال سفارى

The points mentioned are very important but your costs are hellier

 

 

Ekta Jas
by Ekta Jas , Head Of Digital Marketing , InnoBoxx Services

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.

Imran Athaullah Mirza
by Imran Athaullah Mirza , Senior Sales Engineers , Arabian Auto Agency

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

Amit Paul
by Amit Paul , Sr. Manager - Sales , Delta Electronics India Pvt. Ltd.

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.

mohammed negm
by mohammed negm , مدير مبيعات , مؤسسة أطياف لتجارة المواد الغذائية

Thanks

I prefer to wait for more answers from colleagues

Regards

John Mories Macalinao
by John Mories Macalinao , Housekeeper , HRH King Salman bin Abdullaziz Palace

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

thanks!

Deleted user
by Deleted user

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

Nageswaraiah Mannem Mannem
by Nageswaraiah Mannem Mannem , Assistant , M/s Shalimar Automobiles

!.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.

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