Working With Suppliers Part 3
With the right communication, the contractor and supplier relationship can be beneficial to both parties. In this five-part article, in the first and second section, we discussed ways to employ the right supplier and build a trustworthy partnership. In this section, we will discuss how to negotiate pricing in a way that is both effective and productive for future years of working together. In the fourth and fifth section, we will conclude our series.
As St. Petersburg construction lawyers, we are here to offer you any legal counsel you may need pertaining to the construction industry. If you are in need of a St. Petersburg construction attorney at this time, feel free to contact our law firm. For more information on working with suppliers, please continue reading.
It’s Important to Be Nice
The phrase you can “catch more flies with honey” is very relevant to the contractor-supplier relationship. Negotiating with suppliers is a balancing act in which you don’t want to be pushed around, but you also don’t want to be perceived as the schoolyard bully. In order to reach a beneficial outcome, you want to be persuasive but allow your character and professionalism to do most of the talking. By creating a trustworthy relationship with a supplier, you truly can create a lasting partnership.
Sacrificing the Price
Pricing is always a key ingredient in the relationship between a contractor and supplier. With that being said, it’s important for contractors to sometimes compromise or reevaluate their cost expectations to ensure that the supplier is satisfied and that a positive relationship will exist for future negotiations. Even more important, contractors need to ensure that they are purchasing materials that either meet the standard of their project or exceed this standard. If a construction industry professional becomes overly focused on the bottom line of the invoice and on expanding their profit margin, they can get a reputation as a substandard contractor considering they are buying inferior or even defective materials to increase their return.
Don’t Wage War Over Pricing
Like any relationship, contractors need to pick their battles with their supplier. Suppliers will appreciate working with a professional that isn’t ready to go to war over the price of every single material purchased or every single dollar spent. If a contractor is a nuisance to a supplier, they will take their business elsewhere. Perhaps even more importantly, the contractor will be labeled a difficult person to work with which can negatively affect their business in a variety of ways. It’s important for contractors to remember that they are working with the supplier; not against them.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.