Re-negotiate supply contract 1

[sbudzynski]

I would like some input on renegotiating our corporations office supply contract.

I am in control of our pricing contracts for office supplies and am trying to choose a better company to provide us pricing.

Would any fellow TekTipers be able to offer me some insight on good office supply companies you currently use?

I could really use a spreadsheet with pricing you're being offered and try to compare it to my own to get a good basis!

As you can see, I'm pretty much starting from the ground up!

Thank you in advance for all your help!

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Steve Budzynski


"So, pass another round around for the kids. Who have nothing left to lose and for those souls old and sold out by the soles of my shoes"

 

[Craig0201]

Price is a point, not the only point.

You should go through a 7 stage process

1) Evaluate your needs
2) Market research
3) Invite requests to participate in a competitive process
4) Evaluate initial responses
5) Tender
6) Evaluate
7) Negotiate and award

HTH

 

[jsteph]

sbud,
Pricing examples from us would be of little practical value to you, since pricing can vary based on region, order volume, brand name, etc.

As Craig suggested in the 7 steps, you'd get the pricing comparisons in step 3.

You should not get involved, at least initially, in any sort of 'exclusive' agreement or 'guaranteed volume' agreement, regardless of price, at least not until you've had several months to evaluate the service, because service will often be the most important attribute of the vendor.

Let them know you will order from them as needed and reserve the right to shop around. This keeps their pencils sharp, and most reputable vendors know that even though they may have higher prices on some items than their competitors, most reputable customers will put more value on the notion of single-source and good service, and you will stay with them based on service and not because, say, their HP toner cartiges are $5 bucks higher than Acme Co.
--Jim

 

[chiph]

To help you acquire better negotiation skills, you might want to take up the game of Poker.

Chip H.


____________________________________________________________________
If you want to get the best response to a question, please read FAQ222-2244 first

 

[sbudzynski]

Basically I am trying to undercut big office supply corporations and looking for other companies pricing spreadsheets for ammo.

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Steve Budzynski


"So, pass another round around for the kids. Who have nothing left to lose and for those souls old and sold out by the soles of my shoes"

 

[Craig0201]

Jim,

Actually, normally you get the pricing details in step 6. Step 3 is about deciding whether you could work with companies based upon their existing trading experiences.

Steve,

"looking for other companies pricing spreadsheets for ammo."

That's commercially sensitive information. According to most contracts, this is for sharing between the parties concerned only. So I doubt anyone will send you anything.

Also it depends on where you are based. Prices in New York won't have anything to do with the market in South Dakota. They may sell paper but the rest of the market conditions are very different.

Jim makes a good suggestion re: exclusive contracts. In stationary, where generally it doesn't matter where it comes from, we let to at least 2 companies usually on an 80:20 basis. If you let an exclusive contract, this can have worse price effects at renewal time.

Craig