Negotiations with commercial representatives are crucial.
Your profit margin depends on them and there is no room for improvisation.
Negotiating with a sales representative between two clients, when the day is already busy can be hurried.
For this reason, those meetings need to be scheduled.
The size of the pharmacy and its significant purchasing capacity are decisive factors in obtaining greater discounts from the supplier.
But when dealing with a professional salesperson, that's not always enough...
Some pharmacists are better negotiators than others.
Those who know how to buy are accurate and realistic.
They are entrepreneurs who have prepared the negotiations perfectly and have requirements that are always justified.
Thus, to reach the top level of the discount scale, they do not refer to sales for the previous year, but to progress targets for the following year.
You may not be born a good negotiator, but you can be!
Follow these 10 tips and practice.
1. Do not buy based on discount criteria
When buying, you must negotiate the net purchase price to set a competitive selling price while maintaining your profit margins.
If the deal is not in the right direction, make a plan B: a free product offering or a commercial promotion with a company promoter.
2. Analyze your sales
Trading policy according to market volume has become essential for any trading deal.
Focusing purchases on a limited number of products is the key to achieving greater discounts.
The only way to improve your purchases, is to identify and analyze the products that sell the best.
Therefore, it is necessary to identify the Top 100 products that sell the best and to know the profits you made.
3. Prepare the interview with the salesman
You must be well prepared to negotiate.
Discus with your team to get comments and tips related to this deal with the dealer and point out any obstacles you face.
This analytical task will lead to defining the objectives of the deal with the salesman.
4. Choose with the right criteria
To take advantage of attractive direct trading, you need to concentrate your purchases on a limited number of brands in order to buy at higher discount rates and better profit margins.
Profitable trading also means buying into distinct products, taking into account Pareto's law.
This law is based on the principle that 20% of codes generate 80% of turnover.
The goal of the buyer is therefore to concentrate their orders so that 90% of their purchases are made up of the highest selling codes.
5. Keep the balance of your purchases
The sales representative comes with an order target that includes offers, but also new product placements and old code updates, but all these does not necessarily correspond to your needs.
Consider that when you buy a new product, you have to reduce the stock of a similar old products.
6. Make a "win-win" agreement
There are two types of negotiation: the win / lose relationship and the win / win relationship.
In the first type, the buyer's goal is to obtain a high direct discount, but perhaps the relationship with the sales representative will be affected.
The sales representative and the buyer have converging but different goals and interests.
The sales representative wants to place the largest quantities with restrict commercial and financial terms.
And the pharmacist must obtain the necessary and sufficient quantities and the right prices to sell.
An agreement will be reached when these two goals converge on both sides.
The higher the volume you negotiate, the more demanding you will be in terms of trading.
The principle is to allow the sales representative to disapprove some of your requests and gain acceptance elsewhere.
Indeed, the agent, who wishes to maintain a good relationship with his client, cannot take the risk of refusing everything.
Something has to be given to you when you ask for!
7. Exclude products with low sales
You should not be tempted by big discounts on products that does not sell.
8. Negotiate beyond price
The net purchase price is not the only point of discussion with your supplier.
It is also necessary to negotiate the "sales" tools that will help you to increase sales.
The job of the sales representative should be to become a brand development consultant at the point of sale.
If a product does not sell, the responsibility for that failure will be shared between the buyer and the seller.
9. Do not succumb to emotion
When negotiating, show stability and realism.
Negotiation time is without emotion.
The goal of a negotiation is for both parties to believe they have won.
Therefore, always negotiate with the desire not to break the thread and keep in mind that a concession on your part should always be followed by a concession on the part of your interlocutor.
And when the negotiation seems to lead to a dead end, don't hesitate to take the time to think about it, or tell your interlocutor that you will eventually turn to another competing brand.
Finally, once the deal is over, you should summarize everything that has been recorded, asking the seller to validate all of these points one last time.
10. Request written agreements
Everything must be written on the order form as soon as the deal is completed:
Number of products purchased, discounts and net purchase price, benefits provided, supply conditions, payment terms, team training plan, expired receipt, trial doses and other promotional tools...
Before leaving, the salesman must give to the pharmacist a copy of the order form, signed by both parties.