Are you really negotiating… or just asking for discounts?

If your “negotiation” boils down to “Can you give me 5% off?”, you’re leaving EBITDA on the table. A discount is the end result, not the method.

A supplier may lower the price once, but what won’t automatically go down is your total cost: your risk or your lead time. Strong negotiation moves value, not just the number. And yes: it requires internal data and alignment with Finance and Operations.

Here are four strategies that will help you turn your negotiation around:

·      Define the should-cost (technical estimate of the expected cost)

·      Separate price from TCO, risk, and service levels

·      Trade concessions for measurable, auditable commitments

·      Close with governance: KPIs, escalation paths, and quarterly reviews

If the supplier “discounts” but your operation suffers, you didn’t negotiate, you just postponed the problem.

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