Everyone should profit

In a recent article from Computer Weekly it discussed the recent trend of clients demanding large discounts from providers, sometimes up to 24%. This is counter productive as large discounts will only harm the relationship in the long term. Negotiating a ‘win, win’ scenario means that everyone is happy in a relationship. If your vendor is actually loosing money throughout the lifespan of the agreement they will attempt to re-coup losses. This may mean a reduction of quality in the form of staffing levels or technology improvements. No company acts as a charity for another. Thinking you have screwed the vendor in the negotiation only means you loose in the long term.