Ask and You Shall Receive: Getting Vendor Discounts

Spartina believes in discounts. We love to get them, and we are also willing to give them from time to time.

The number one principle involved in getting a discount is this: Ask for it.

If you don’t ask, you will never get a discount. There is nothing lost in asking. However, before you ask, think through the terms and what you are asking for. Here are some tips:

• Offer your vendor the distinction of being your ‘preferred vendor.’ Let them know they can count on you for repeat business. Give them an idea of the volume they can expect over a year.
• Offer your vendor prompt payment in exchange for the discount. Everyone loves to be paid quickly. It eliminates the need to chase down the money that is due. Offer to pay within 5 to 10 days in exchange for a 5% discount.
• Offer them visibility. Ask for discounts if you help promote their service or serve as a reference. This may be networking and references, or if you have a website, offer to promote their business in a links section, in exchange for a discount.
• If you are working with a vendor on a contract basis, offer a long-term contract in exchange for a discount. For example, independent consultants love to know they have business for six months, rather than one month at a time. In exchange for a longer contract, they will often discount their services by 10%. You can also ask for discounts if you agree to spend $X over a 12 month period.
• Ask for “not to exceed” estimates on projects billed by the hour. This protects you from overruns, and if the contract includes this and there is an overrun, it equates to a discount to you.
• When all else fails, you can also use a little “fear” by pointing out that their competitor offers a lower rate. This is not the ideal way to get a discount, as it doesn’t make the vendor feel safe. However, if it is a fact, you can do this in a non-threatening way, using a friendly tone of voice, and indicating how surprised you were to see that there was a lower rate. Rule of thumb: be coy.

Above all, if you get a discount, uphold your end of the bargain. If you offer prompt payment, pay promptly. If you offer visibility, give it. Please never take these tips as a one-sided way of cheating someone. They are meant to establish a great working relationship of give and take. Everyone wins.