tag:blogger.com,1999:blog-11358211.post-8233611079859574172011-10-17T11:12:00.002-05:002011-10-17T11:21:50.668-05:00I hope that you have enjoyed the article, "<a href="http://nextlevelpurchasing.com/articles/negotiation-performance.html">How To Negotiate When 'Time Is Money'</a>."<br /><br />The article gave an example of how you can negotiate in order to give your supplier the incentive to deliver on time. Of course, on-time delivery is not the only aspect of good supplier performance, so I'll use this post to provide a couple more examples...<br /><br />"What you've proposed is what we consider a premium price. We usually push for rock bottom prices. However, we'd be willing to pay a premium price for premium performance. Here's what we propose: you reduce your price by 10%; however, if your deliveries conform to the 4 parts-per-million defect rate that you promised, we'll pay the price in your proposal."<br /><br />"What you've proposed is what we consider a premium price. We usually push for rock bottom prices. However, we'd be willing to pay a premium price for premium performance. Here's what we propose: you reduce your price by 10%; however, if you respond to all service calls within 10 minutes as you promised, we'll pay the price in your proposal."<br /><br />The point I'm trying to make with the above-linked article and this post is that you should never approach a negotiation without considering the criticality of <a href="http://nextlevelpurchasing.com/articles/supplier-performance-management.html">supplier performance</a> and how you might be able to negotiate creatively to assure - and not decrease the percentage chance of - satisfactory performance.<br /><br />To Your Career,<br />Charles Dominick, <a href="http://www.nextlevelpurchasing.com/spsm.html" title="Purchasing Certification - SPSM Certification for Purchasing Professionals">SPSM</a>, <a href="http://www.nextlevelpurchasing.com/spsm2.html">SPSM2</a><br />President &amp; Chief Procurement Officer<br />Next Level Purchasing, Inc.<br /><i>Struggling To Have A Rewarding Purchasing Career?<br />Earn Your SPSM^® Certification Online At<br /><a href="http://www.nextlevelpurchasing.com/" title="Purchasing Courses - Online Courses From Next Level Purchasing">www.NextLevelPurchasing.com</a></i><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/11358211-823361107985957417?l=blog.purchasingcourses.com' alt='' /></div>Charles Dominickhttps://profiles.google.com/104534341738889482173noreply@blogger.com1