The challenging economic climate has made the procurement department more important than ever.
Purchasing practices have certainly changed over the years and this area is constantly evolving to become more efficient.
Many studies have been published on this subject and extensive research has been done.
There are best practices that can be applied to your every day purchases.
This article will help the average consumer and the seasoned corporate purchasing professional.
Develop strong negotiation skills: For some of us, negotiating can be a daunting and even intimidating task.
Negotiating becomes more comfortable with practice but one key item can greatly help you.
Planning is the key to a great negotiation.
Research your purchase and make sure you are aware of key variables, historical prices, etc.
For example, lets say you are buying a car.
If you go in prepared, knowing the invoice price or the blue book value, you can stick to a number that you are willing to pay for the car, based on published values.
Your negotiation becomes much easier now that you are armed with actual data to back up your offer price.
Focus on total cost: Everything has a cost.
The time spent researching a product, the manner in which you procure a product, and many other variable factor into your total price paid.
If you find an item you want but then drive hours to several different sellers to find the best price, you are essentially raising your total cost.
Time spent, Gas, transportation costs, etc now become part of the equation.
Be aware of these variables and control them.
This brings us to the most important point, use technology to your advantage.
Using Technology: If you have frequent purchasing habits, or needs, try to automate with technology.
Allow technology to streamline your research and help you make decisions.
In addition, using the internet to make your purchases allows you to research deals and special offers in moments.
Some sites online still offer free shipping.
Before making your purchase, always factor in the shipping and handling costs.
Be wary of merchants offering low prices but then making it back on high shipping costs.
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