Negotiating a new contract with a supplier


Problem: You're negotiating a new contract with a supplier, who wants to increase his rates for orders below a minimum quantity. Which statements or actions should you apply in this situation? Instruction: Choose all options that best answer the question. Answer Choices Make it clear to your supplier that he risks losing your business because of this rate increase Tell your supplier that you won't be able to justify an increase in purchases to senior management, as they're currently looking for cutbacks Give the supplier different options that include a slight increase in the current order quantity Say "I understand you need higher volume sales to overcome low profit margins, but maybe we could look into lowering the penalty percentage rate" Say "Your rates are too high, and I think your minimum order quantity is unrealistic"

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Other Management: Negotiating a new contract with a supplier
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