Negotiating with a retail buyer can seem like a risky thing to do once you’ve locked in your vendor agreement, but it’s far riskier to agree to requests that add cost or complications in the interest of maintaining your relationship.
A well-supported argument against a buyer’s request for more or less product per display, or a different style, location or launch date does not come at the expense of buyer goodwill. In fact, when you do your homework and take the time to understand the buyer’s goal in making such a request, you are likely to uncover a path of overlapping interest and even a mutually beneficial alternative.
Download our recorded webinar here.
That doesn’t mean there aren’t some rules around how to approach the process. Any negotiation has the potential to go off the rails if you’re not prepared, or if you come across as unreasonable or operating entirely out of self-interest.
Follow these six simple rules for buyer negotiations that are productive, businesslike and demonstrate your grasp of the retailer’s needs and goals. You may not get the terms you are seeking, but you can still leave the table in a stronger position than if you had done nothing.
The Rules
1. Do your homework: An all-purpose piece of strategy that should not be skipped. The more you know about the reason behind the request, the cost impact at every stage, and the alternatives, the better your chances of negotiating a compromise.
2. Don’t assume you can simply ask for a waiver or talk your way through. You need to make a case. (See Rule number 1.)
3. Ask for success metrics: What is the retailer’s definition of a win for this display? What are the buyer’s goals in asking for this change?
4. Study and understand shopper behavior on the store floor: If your buyer is asking for a display configuration that is not compatible with the way buyers are likely to interact with it, be prepared to show examples of what can happen. The wrong design can leave displays quickly ransacked, or actively discourage buyers.
5. Come prepared with data and visuals: Show and tell is more effective than tell and tell, which has a way of lapsing into …still more telling.
6. Don’t argue or complain: Don’t lose sight of the wide swath of mutual interest here, or the long view. The best outcome is one that aligns with everyone’s goals, and they are rarely that far apart.
Partner with TPH Global Solutions for Stronger Retail Campaigns
Big box and club store retail campaigns are never easy. There are a long list of requirements, logistics and deadlines to negotiate.
At TPH Global Solutions®, we have decades of experience helping brands land, launch and repeat successful retail campaigns at retailers that include Costco, Walmart, Sam’s Club, Home Depot, Lowe’s and a long list of other specialty retailers, grocers and pharmacy chains.
We guide our clients through the process from start to finish, with custom retail packaging and retail display design, and support for logistics, transportation and supply chain optimization.
Contact us to learn more about how we can help you negotiate your next retail program.
