Negotiation starts from the first communication between the buyer and the supplier right through to the final signing of the contract. Negotiation is used to obtain a discount, agreed timescales, and come to an agreement on contract terms for complex purchases. It is the buyer‘s responsibility to negotiate the best terms, conditions and price for every purchase whilst maintain or improving quality or services.

Definition of Negotiation
Negotiation is a bargaining process between two or more parties each with its own viewpoints and objectives, seeking to reach a mutually satisfactory agreement on or settlement of, a matter of common concern. In a procurement context, it is the process of
arriving at an agreement on the conditions of contract, through discussion between buyers and sellers.

The ability to negotiate effectively is so fundamental. While certain people do have natural talent for negotiations, it is a skill which must be honed with training. Effective preparation is a key aspect of negotiating with and will include factors such as their:

1. Market share and penetration
2. Financial health and stability
3. Corporate structure
4. Goals
5. Product pricing.

Cultural norms and personal preferences are also important as our trading world becomes more global and complex.

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