The Art of Negotiation…

First and foremost the negotiation of any contract or purchase must be a win-win for both parties. If not, it will be either be a single transaction or go down in sizzling flames at the worst possible moment with both parties steadfastly believing they were victim and mistreated by the other party. Secondly, you must be cognizant of whether the person across the table desires to be a true business partner or just another vendor out to make as much off you as possible. Thirdly, if you don’t ask for it you’re not going to get it, the key is knowing what you need and how to go about getting it. This is where that kernel of fleet knowledge comes into play. The flip-side is that you must be constantly cognizant of fraud whether it be internally, externally or a collaborated effort. Lastly, once you’ve negotiated the win-win contract for both parties you must hold the vendor accountable.

The following are a few of the tools that will enable you to successfully do so:

• Vendor Qualification List
• Vendor Balanced Scorecard
• Performance Based Contracts
• Cost break points
• National account pricing – ( While National Account pricing can benefit some fleet they are not are not always best, in some cases they will increase price and decrease quality and service)

We have extensive experience in negotiating capital, aftermarket, and vendor maintenance contracts. Let us know if we can assist you.