Smart-Purchasing.com: Best Practices: Checklist

Best Practices: Contracting
Negotiate Agressively

Traditional	Best Practice
Three written bids, first and final Extend existing contracts Hammer on price	Decompose product/service costs to establish target price Document negotiations strategy Rely on facts to support strategy Negotiate aggressively Meet face-to-face Make no assumptions Ask for a lot Offer value back Use all total cost levers Price Terms (payment, warranty, freight) Technology

Rationale
Reduce total costs Do it from facts to maintain relationships and sustainable economics
Details
Written strategy for all contracts over $100,000 Formal negotiations for all contracts over $100,000

Best Practice | Case Study | Commentary