Vendor Negotiation & Increasing Margin

Most people are afraid to ask for what they want in life.
Particularly with money.

Most people also feel uncomfortable saying “no”.
Particularly to money.

You can leverage these facts in your favor.
And get better rates from your vendors to increase your margin.

All it takes is a little guts, a little strategy, and a little luck.
Just like most things in Sales.

Here’s a personal story to show you how.

Pricing and Negotiaion

  • They Want
  • You Want
  • Final Price

Real Life Example:

My customer had an immediate need for a motherboard because their server was down.

My main supplier was on an exotic island. Not kidding. Had no clue either.

My backup supplier didn’t have any stock.

Fortunately I had already selected a backup backup supplier.
I looked on their website to see the price.
They wanted $2,000 for the part.
I looked elsewhere. eBay had it at $1,000…

I called “Joe”. Our call went like this:

Joe: “Hi, this is Joe.”

Me: “Hi Joe, I’m looking for a motherboard listed on your website. The part # is…”

Joe: “Ok, we have 8 in stock”

Me: Great.. Yeah I see too that it’s listed at $2,000… That’s *really* expensive.


Joe: Right.. Well $1,850 is as low as I can go on those.


All you have to do sometimes to get a better deal is make a comment that the vendor’s price is expensive. For whatever reason, most people will immediately lower their price. That principle saved me $150 in 5 seconds…

Me: “Huh.. You can’t own these for more than $500 a piece. I’ll cut you a P.O. for $1,200 right now for one.

Joe: “…well I’ll see what I can get approved, but will have to ask management.”

Me: “Great! Yeah, please let me know. Would love to buy for that price.”

*We hang up the phone*

*3 minutes pass*

*I receive an email saying he will sell for $1,395 – but that’s as lowas he can go* … 😉

Here, I just leveraged some industry insight. He’s a refurb parts broker. He buys low and sells high. So I stated the obvious, and pointed out I knew he could do better than $1,850. I offered to purchase one right now at a better price.

That got him excited, and made him willing to go just a bit lower.

Asking for a better price isn’t hard.

It certainly isn’t wrong, either.

If you’re able to negotiate a better price from your suppliers, you can pass that along to your customers. And make higher margins for yourself. Everyone wins. So give it a shot!


I’d be curious to hear your story if you’ve had success negotiating a better deal.

Could be in business, or on your phone bill.

How’d you do it?