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volume buying and negotiating deals

5/6/2003 6:46 PM
Joe Gagan	volume buying and negotiating deals This is borrowed from my post on the other thread: Quick tips on buying and negotiating ------------------------------------- Get volume pricing on parts even if you aren't buying it all at one time. It is called 'scheduling your order' Here is how it works: example- You make an agreement to buy 1000 Hammond boxes over a year period, many suppliers will give you the 1000 piece price if you agree to order 90 a month over a 12 month period. The terms vary , but most places will do if you have been a buyer for a while, or if you have the amount open on your credit card to order the 90 quantitity at one time. This can work for pots,etc. another good reason to consider streamlining your circuits to use alot of the same pot value etc. It takes some big balls to commit to those big numbers, but think creatively, let's say you only sell 50 pedals a month, so you have to sell off another 40 raw boxes to other builders to keep your agreement. At the price you are buying them at , you can easily move them on the net to other builders and keep things moving. Stay flexible. I just made a deal to get my knobs at a huge volume price even though I was only placing a small order at this time using this method. Part of the tip is that I had already placed an order earlier last month, so I was an established customer [ When they look and see that you are already in the system, this is good]. I also had switched to them from someone else, so they had incentive to work hard to please me. Be nice to the person on the phone [ put yourself in their shoes], sometimes it takes getting THEM to think creatively to get out of the 'normal' way they do their process. Remember, they WANT your account, they will do some pretty amazing things IF you ask. Be polite, but insistent. It is pretty cool how many times I have had a breakthrough AFTER being told it was impossible. At each supplier, get a sales rep that you work with every time you call. This person will get to know you and your needs, and do a good job for you. If you get a dud [ no enthususiasm, sounds like you are interrupting their day etc], get off the phone and call back till you get someone who is excited to help you. I am serious. I love negotiating. I have had a great coach in this. Keep your emotions in check, make the deal beneficial to both parties, and have a good time with it. Remember there is always another way to get it done, never negotiate from the position that you NEED that other person. It simply is NOT TRUE, and will put you at a disadvantage. Remember if you put $10,000 worth of parts on your master card, you can probably never lose the value of those parts. At the pricing you will get, you will almost for sure be able to at least break even , probably way better than that.

5/6/2003 6:46 PM

Joe Gagan

volume buying and negotiating deals

This is borrowed from my post on the other thread:

Quick tips on buying and negotiating
-------------------------------------
Get volume pricing on parts even if you aren't buying it all at one time. It is called 'scheduling your order' Here is how it works:

example- You make an agreement to buy 1000 Hammond boxes over a year period, many suppliers will give you the 1000 piece price if you agree to order 90 a month over a 12 month period. The terms vary , but most places will do if you have been a buyer for a while, or if you have the amount open on your credit card to order the 90 quantitity at one time.
This can work for pots,etc. another good reason to consider streamlining your circuits to use alot of the same pot value etc.
It takes some big balls to commit to those big numbers, but think creatively, let's say you only sell 50 pedals a month, so you have to sell off another 40 raw boxes to other builders to keep your agreement. At the price you are buying them at , you can easily move them on the net to other builders and keep things moving. Stay flexible.

I just made a deal to get my knobs at a huge volume price even though I was only placing a small order at this time using this method. Part of the tip is that I had already placed an order earlier last month, so I was an established customer [ When they look and see that you are already in the system, this is good]. I also had switched to them from someone else, so they had incentive to work hard to please me.

Be nice to the person on the phone [ put yourself in their shoes], sometimes it takes getting THEM to think creatively to get out of the 'normal' way they do their process.
Remember, they WANT your account, they will do some pretty amazing things IF you ask. Be polite, but insistent. It is pretty cool how many times I have had a breakthrough AFTER being told it was impossible.

At each supplier, get a sales rep that you work with every time you call. This person will get to know you and your needs, and do a good job for you. If you get a dud [ no enthususiasm, sounds like you are interrupting their day etc], get off the phone and call back till you get someone who is excited to help you. I am serious.

I love negotiating. I have had a great coach in this. Keep your emotions in check, make the deal beneficial to both parties, and have a good time with it. Remember there is always another way to get it done, never negotiate from the position that you NEED that other person. It simply is NOT TRUE, and will put you at a disadvantage.

Remember if you put $10,000 worth of parts on your master card, you can probably never lose the value of those parts. At the pricing you will get, you will almost for sure be able to at least break even , probably way better than that.

5/6/2003 8:23 PM
Mark Hammer	Excellent advice. Guaranteed to put a newbie 8 months to a year ahead of where they might be without it. Thanks, Joe.

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