Author: Thomas Wandler, Managing Director at Kloepfel Consulting Austria
Conducting annual meetings and price negotiations at the end of the year, but sometimes also at the beginning, allows companies to both reflect on the past year and plan for the coming year. We give you tips on how you can implement these discussions in the best possible way:
The basis for negotiating new contracts or adjusting existing contracts is the performance of suppliers and market conditions in 2023. Analyses of market trends and price developments are particularly important in industries where commodity prices and market conditions are volatile. These findings help you to define the conditions for the coming year.
Timing of annual meetings
Supplier meetings at the end of the year
Many companies close their financial year on December 31. End-of-year meetings allow them to evaluate the past year’s performance and set their goals for the coming year, including budget planning.
Beginning of the year as an alternative
However, some companies prefer to hold annual reviews at the beginning of the new financial year, especially if their financial year does not correspond to the calendar year.
In certain industries where market conditions change quickly, early year meetings may be more relevant to consider more up-to-date data and forecasts.
Companies with complex closing procedures may need more time to gather accurate data for the meetings, which may make meetings at the beginning of the year more useful.
Implementation of the annual review
Detailed preparation
Before the talks, it is important to collect all relevant data and information. This includes sales figures, market trends, price developments and supplier performance indicators.
Target definition
Set clear objectives for the negotiations, such as price reductions, improved delivery conditions or quality standards.
Stakeholder management
The involvement of all relevant stakeholders, such as purchasing, sales, finance and, if applicable, company management, is crucial for success. Meanwhile, decision-makers on the supplier side should be involved in these discussions.
Flexible negotiations
Flexibility and openness to creative solutions can lead to better results. For example, long-term contracts or volume discounts could be offered to achieve more favorable prices.
Transparency and communication
Open communication about expectations and opportunities is essential to avoid misunderstandings and create a basis of trust.
Follow-up and implementation
Once the discussions have been concluded, it is important to record the agreed terms in writing and create a clear roadmap for implementation.
By following these steps, you can make effective use of your annual meetings. Find out about our services if you lack resources for these important discussions.
You can find out more about negotiations here: 11 expert tips for successful negotiations.
Author:
Contact:
Kloepfel Group
Christopher Willson
Tel.: 0211 941 984 33 | Mail: rendite@kloepfel-consulting.com