If Purchasing negotiations were like poker, you’d be able to look across the table and try to determine if your competitor had made his or her best offer. It’s more likely, however, that the bulk of your negotiations occur on the phone. There are some similarities, but for the most part your phone negotiations require a different kind of preparation.

There are Purchasing experts who recommend following these four rules of negotiation, tested and true.

1. Prepare, prepare, prepare. You still must do all of your homework in advance, even if you won’t be sitting across the table from the competition. Don’t count on having the time to locate figures or formulate responses. Most importantly, know your limitations: What you want, and how much you are willing to concede. At the same time, anticipate questions that could arise, and have your answers ready.

2. Always take the high ground. You’ll start out ahead of the game — and have more control — if you initiate the phone conversation. You will know it’s the best time for you to be doing this, and you’ll have the right focus and mind-set. If the supplier beats you to the punch, ask for five minutes. Then, gather your notes and your thoughts, and call back. Don’t allow yourself to be caught entirely off-guard.

3. One thing at a time. Resist the natural urge to multi-task during negotiations. This means turning off or turning away from your computer monitor or your Blackberry. Your e-mail can wait.

4. Get it on paper (right away). It’s normal you’ll want to jot down notes during your conversation, to track what was said and what promises were made. But don’t wait until to tomorrow to sort through those notes and transcribe them — your memory may not serve you as well as you might’ve hoped. As soon as possible after the conversation has ended, type up your notes.

Tags: negotiation, purchasing, supplier