Operations & Systems
Most owners negotiate the price and accept everything else.
Terms such as delivery time, payment period, returns, minimum orders and notice for price changes often matter as much as the rate itself. This session helps owners prepare for a vendor conversation, decide what they can give and what they need, and leave with an agreement written down, in a way that keeps the vendor willing to work with them next month.
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A good negotiation leaves both sides able to keep trading.
A hard bargain that leaves a vendor unable to deliver is no bargain. Equally, a business that never asks for anything accepts terms that were set for someone else. Preparation turns negotiation from an uncomfortable bargaining match into a conversation about what each side needs.
Small businesses often negotiate from a weaker position than large buyers, and sometimes from a stronger one than they realise: a regular, prompt-paying customer is valuable to many vendors. Knowing which situation you are in changes what to ask for.
What the session covers
32 topics across 6 areas. Six parts of preparing, holding and recording a negotiation.
Preparing Before You Sit DownMost of the work happens before the conversation.5
- What you buy, how much and how often
- What you pay now and what similar vendors quote
- Your must-haves, your wants and your limits
- Your alternatives if this vendor says no
- What the vendor probably wants from you
Terms Beyond PriceMore room to trade than one number.6
- Delivery schedule and who bears transport
- Payment period, advance and discounts for early payment
- Minimum order and flexibility on quantity
- Quality standards, inspection and returns of faulty goods
- Notice before a price change
- Exclusivity, if any is being asked, and what it costs you
Giving something the vendor values, such as regular orders or prompt payment, can win something you value.
Having the ConversationCalm, specific and fair.6
Illustration (hypothetical): a small caterer asks a regular vendor for a longer payment period in return for a monthly standing order. The vendor prefers faster payment but values the guaranteed volume. They settle on a middle period and a clear delivery schedule.
- Opening with the relationship and the volume
- Making a clear first proposal with reasons
- Listening for what the vendor needs
- Trading one term for another instead of only conceding
- Pausing and not agreeing under pressure
- Ending with a summary spoken aloud
Payment Terms and the Law for Small SuppliersKnow the timeline before you agree to one.5
- Why payment period is a real cost to the vendor
- Under the MSMED Act, 2006, payment to a registered micro or small supplier is due by the date agreed in writing, which cannot exceed 45 days from acceptance of goods or services; with no written agreement it is shorter
- Why this matters to your own accounts and tax position
- Confirming whether a vendor is registered as a micro or small enterprise
- Agreeing a period you will actually keep
This reflects the Act's wording as we understand it. Rules and their tax effects can change. Check the current position with your accountant before setting terms.
Putting It in WritingWhat is not written is easily remembered differently.5
- A short email or letter listing agreed terms
- A purchase order that refers to them
- Dates, quantities, prices and tax treatment
- What happens in case of delay or defect
- When a formal contract and professional advice are worth it
Living With the AgreementA negotiation does not end at the handshake.5
- Checking that the agreed terms appear in invoices
- Raising deviations early
- A review date for price and terms
- Keeping goodwill while holding to the agreement
- Knowing when to go back to the market
What participants leave with
- A negotiation preparation sheet
- A checklist of terms to consider besides price
- A short template for confirming terms in writing
- Notes from role-play practice on a hypothetical vendor
- A list of points to check with their accountant or adviser
What this session is not
- Legal advice or contract drafting
- A set of tricks to pressure vendors
- A guide to bargaining with large corporate buyers or government departments
- A suggestion that participants share prices or terms with competitors
How the session runs
A practical session using hypothetical vendors and figures. Participants complete a preparation sheet for one real vendor conversation they expect to have, then practise in pairs, with one playing the vendor from a short brief. The group reviews what worked and drafts the confirming message. Participants are not asked to share their actual prices or vendor names, and no one is asked to coordinate terms with other businesses.
What your students leave with
- A preparation sheet listing their priorities, limits and alternatives
- A list of terms beyond price that they could ask for or offer
- Practice making a clear proposal and responding to a counter
- A short written summary of terms to send after the conversation
- An understanding of payment timelines for micro and small suppliers
- A plan to review the terms at a fixed date
Scheduled sessions
Nothing scheduled yet
Sessions are arranged with a college once a date is agreed. Ask us and we will find the right person for it.
A student rather than a college? See what is coming up, or ask your placement team to host this.
Know what you need, ask for more than price, and write down what you agree.
Tell us who your students are and what stage they are at. Sessions are free for participants.