We’ve been in the business of finding savings for fleet managers for 13 years now. And in that time, one thing we’ve heard again and again is that their efforts to find savings is one of the key factors on which they’re assessed.
For some, the ability to cut costs is often what decides whether they get a year-end bonus. That’s why we’ve created our new white paper, “A Fleet Manager’s Guide to Bigger Bonuses,” designed to help managers identify efficiencies and bring down costs, even after they think they’ve tried every possible strategy.
One of the things we discuss in the guide is the best way to negotiate with vendors. Here’s an excerpt from our nine-point list:
1. Start With Solid Communications
By remaining attentive and responsive, businesses can build a rapport with their vendors, allowing them to have an advantage in future interactions.
2. Do Your Homework On Costs
“There’s no better position to be in when negotiating a price than to know what it cost the guy on the other side of the table to make what he’s selling,” Derek Johnson of Tatango tells the magazine Inc. When you know what it cost to produce that product/service, you have a much better idea how much room you have to negotiate.
3. Speak Their Language
As you interact with your vendors, try to learn their jargon. You’ll demonstrate you know their field, and they’ll treat you with more respect.
4. Find Mutual Gains
If the supplier won’t move on their price, find areas where you can agree, such as discounts for bulk purchases, or the size of the down payment, or other things that can benefit you and the vendor.
5. Quote More Than One Supplier
Before talking with a vendor, talk to their competitors to get at least three other prices, DC Fawcett of Paramount Digital Publishing tells Inc. Let the vendor know you’re getting multiple quotes and will go with the best one available. “This creates competitive pricing,” Fawcett says.
The guide also includes tips for running a fuel card program, managing vendors in multiple locations and finding savings with mobile fueling. Download it now to learn more about you can find your way to a bigger bonus.