Negotiating with suppliers Reading Answers

Sep 9, 2024

Negotiating with suppliers Reading Answers is an academic reading answers topic. Negotiating with suppliers Reading Answers has a total of 7 IELTS questions in total, where you have to state if the statements are agreeing with the views of the writer of the text or not.

Candidates should read the IELTS Reading passage thoroughly to recognize synonyms, identify keywords, and answer the questions below. IELTS Reading practice papers, which feature topics such as The Negotiating with suppliers Reading Answers. Candidates can use IELTS reading practice questions and answers to enhance their performance in the reading section.

NEGOTIATING WITH SUPPLIERS

Negotiating the right deal with your suppliers doesn't necessarily mean getting what you want at the cheapest possible price. You may want to negotiate other factors such as delivery times, payment terms or the quality of the goods. Most business owners would view a good deal as one that meets all their requirements. But there are many other issues to consider, such as whether you want to do business with a particular supplier again. Both sides should conclude a negotiation feeling comfortable and happy with the agreement. Negotiations can be unsuccessful if either side feels forced into a corner.

Before you start negotiating, state the aspects of the deal you're happy with and the points you want to discuss. Ask the supplier to do the same. Make sure both sides are satisfied with what is being negotiated. Get the supplier to restate any discounts offered and payment terms. Keep these key bits of information to hand. If you have enough bargaining power, insist on using your own terms and conditions of purchase. Do not indicate that there are things you're prepared to concede or compromise on too early in the negotiations. Try to give the impression you're approaching the negotiations positively without revealing your position. For important or large purchases suggest setting out the key points of the deal in writing. For example, for the purchase of company cars, these might state your requirements, such as the make, year, model, the interior specification and delivery times. If things are in writing, this can help prevent later conflict.

You also need to be aware of common negotiating tactics. If the other party keeps referring to urgent deadlines or a person they need to confer with, remember they may be using pressure tactics. Use such strategies yourself with caution, as they can be very irritating. Don't allow pressure to force you into agreeing to a point you're not happy with. Ask for a break if you need one. Each time you agree to a point, clarify that you've understood it correctly and write it down.

In some trades, suppliers set artificially high prices that are then permanently discounted. If this scenario applies to your

business, then ensure that any concessions the supplier gives are real- negotiate discounts that go beyond the standard level. Some price negotiating techniques will be familiar if you've ever bartered at a market. Never accept the first offer - make a low counter-offer in return. The other party is likely to come back with a revised figure. Always ask what else they can include at the given price. If the price is suspiciously low, ask yourself why. Are the goods of sufficiently high quality? Do they really offer value for money? What will the after-sales service be like?

You can also try to make the asking price look high by exposing any ongoing costs. Ask about repair costs, consumables and other expenses. If the current state of the supplier's market means prices are falling, point this out, as their profit margins will be higher and they'll be able to offer you a better deal.

Use your bargaining power to get a good deal. For example, if you're a big customer of the supplier, you could ask for bulk discounts.But remember that if you squeeze the price too low-perhaps by threatening to walk away from the negotiations - you may end up getting a poor deal. The supplier may have to cut costs elsewhere, maybe in an area such as customer service, which could prove costly to you in the long run. Even if you are a supplier's main customer and enjoy most of the bargaining power, forcing it to meet prices at which it could go out of business won't protect your reputation as a highly valued customer. The supplier will soon look for other customers and is likely to feel resentful.

Questions 21-27

Do the following statements agree with the views of the writer of the text?

YES - if the statement agrees with the writer's views

NO - if the statement doesn't agree the writer's views

NOT GIVEN - if it is impossible to say what the writer thinks about this

Conducting repeat business is a factor that must be considered when negotiating with a supplier.

Answer: Yes

Supporting statement:Most business owners would view a good deal as one that meets all their requirements. But there are many other issues to consider, such as whether you want to do business with a particular supplier again.

Keyword: supplier,again,deal

Keyword location: 1st paragraph,3rd line

Explanation: Both sides supplied and businessmen should conclude a negotiation feeling comfortable and happy with the agreement,so that they can go for repeat business.

It's important for your supplier to realize from the start that you too are willing to make compromises in order to achieve a satisfactory deal.

Answer:No

Supporting statement:Do not indicate that there are things you're prepared to concede or compromise on too early in the negotiations

Keyword: compromise, negotiation,concede

Keyword location: 2nd paragraph,5th line

Explanation: businessmen are advised not to surrender to suppliers even before negotiating. For a better deal they need to protect their requirements and make deals according to that.

Putting pressure on the person you're negotiating with by referring to a deadline that you have to keep can always be a useful negotiation tactic.

Answer:No

Supporting statement:If the other party keeps referring to urgent deadlines or a person they need to confer with, remember they may be using pressure tactics. Don't allow pressure to force you into agreeing to a point you're not happy with. Ask for a break if you need one.

Keyword: pressure,deadlines

Keyword location: 3rd paragraph, 2nd line

Explanation: pressure tactics are not good negotiating tactics. Rather don't allow pressure to force you into agreeing to a point you're not happy with the deal.

Getting training with price negotiations can be a very important investment.

Answer:Not given

Explanation: Not given in the passage

Research the market of your suppliers' own suppliers to see if prices are falling, as this can make your suppliers' own costs go down.

Answer:Yes

Supporting statement:If the current state of the supplier's market means prices are falling, point this out, as their profit margins will be higher and they'll be able to offer you a better deal.

Keyword: market,profit, falling

Keyword location: 5th paragraph, 1st line

Explanation: If the prices of that supplier are falling, there is a chance that you will get better deals,so it's important to research about the recent market trends.

Ensure that your supplier will buy back unused stock at the price that you paid for it.

Answer:Not given

Explanation: Not given in the passage

Put as much pressure on your suppliers as possible, as this will help you achieve your goals.

Answer:No

Supporting statement:Even if you are a supplier's main customer and enjoy most of the bargaining power, forcing it to meet prices at which it could go out of business won't protect your reputation as a highly valued customer. The supplier will soon look for other customers and is likely to feel resentful.

Answer:power, forcing, resentful

Keyword location: Last paragraph,last line

Explanation: too much pressure on the supplier can make him resentful and that will affect the reputation of the businessman. So putting so much pressure on the supplier is not correct.

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