Dear OJ,
In order to negotiate successfully with this person you need to negotiate from a position of strength.
Right now, you appear as amotivated buyer who has their eye set on a particular machine, and the sales person probably thinks that you are talking only to him.
Before you complete your negitaion, look around to see if you can find another vendor for the machine. Nothing does wonders for bringing the price down, than having two or three people submit bids. You should always solicit (RFB’s) Requests for Bids. However, I understand that this vendor may already have a relationship with the company.
Ideally, you could have sent out a letter requesting bids. In the letter you would have stated what machine you were looking for and the volume of work and the willingness or desire for a three year lease to buy at the conclusion of the lease.
You would let the vendor know that there is a Request for Bid, but that since you already have a relationship, that you wanted to give him the first opportunity.
However, since it seems you are in the process now, here is what you can do.
In order to successfully negotiate this contract, you need to know:
- The usage history of other copiers. (perhaps you can negotiate him down based on future usage with past usage as evidence)
- Does the printing company know you want to lease to OWN? (often if you sing a rent to buy document, the monthly rental can be reduced because they will make up the difference when they sell it at the end of the lease period)
- What is included in the 300/month…perhaps there are things included you do not need…i.e. printer ink. (tell him to take that off that you will buy your own ink…(not in those words))
- Some where in the negotiation, probably here, ask this important question: What will it take to get this machine for 150.00 per month?
If this does not work, then move on to the following:
- Ask if you prepay the lease (one year at a time), can they reduce the monthly rate to 150.00
- How much down payment can you make…What leeway do you have for that? After negotiating down as much as you can, then go to asking how much down payment will reduce the monthly payment to 150.00.
- If you are not authorized to use a down payment to reduce the rent, you may have to use your bosses name. Something like, I am sorry, my CEO wants that machine, but he is only willing to pay 150.00 per month.
He is after all, willing to purchase it at the end of a 3 year lease. Let me think about it, and make some phone calls. (he will know that this means you will look for another vendor to meet you at your price). THEN STICK TO YOUR POSITION.
By the way...some of this will not work, if you are not authorized to seek other vendors. If this is the case, report back to the CEO or his partner in the absence of the CEO and ask if you have permission to use another vender. That this one does not want to meet our price of 150.00 per month.
You really need to get into a position of strength.
__________________
YOUR PAYMENT AND BONUS IF ANY MAY BE TAX DEDUCTIBLE
Edward M. Johnson
