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Small firms urged to negotiate

By admin
Created 07/05/2010 - 12:38
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Many small and medium-sized business owners could improve their negotiating skills, according to a new study by T-Mobile.

The study suggested that one in ten small business bosses only begin negotiating with suppliers when they are having cash flow problems.

Over a third of small business leaders expect suppliers to quote an unreasonably high first price and 71% believe they offer better deals to large enterprises.
Reasons given for lack of negotiation included lack of time, other priorities and the belief that haggling will make little difference

Just over 60% of respondents said they had walked away from a supplier after receiving the initial quote, rather than attempt to secure an improved offer.

Reasons given for lack of negotiation included lack of time, other priorities and the belief that haggling will make little difference prevent them from actively seeking the lowest possible price.

With cash flow still tight for many small firms the research indicates a vital area of savings that businesses are missing out on.

T-Mobile's head of business marketing Max Taylor said it is understandable that small firm leaders find negotiations a drain on their time but that they missing out on the best deals available.

"If we can sidestep the negotiations process, it relieves managers of this additional pressure. This is why it is important for suppliers to offer good value, upfront deals to the UK's small businesses," said Mr Taylor.


Source URL:
https://www.newbusiness.co.uk/articles/planning-advice/small-firms-urged-negotiate