27 September 2013 | Helen Gilbert Supply Management
Buyers are twice as likely to lie during negotiations than sales people, new research has found.
The survey conducted by consultancies Four Pillars and Selling Interactions asked B2B buyers, sellers and those occupying dual roles a set of 12 questions to understand the tactics being used during negotiation processes.Of the 143 people quizzed as part of The good, the bad & the ugly: dirty tricks in buying & selling report 53 per cent were purchasers, 23 per cent were sellers and the rest held both purchasing and selling roles.Lying was found to be an acceptable part of the negotiation process with 37 per cent or buyers prepared to tell an untruth, compared to 15 per cent of sales people.
Very interesting findings from our colleagues across the pond. In my experience, when negotiating rates either formally in a RFP event or one on one with a carrier, not being upfront and transparent by the buyer (shipper) on shipping volumes, seasonal spikes and troughs, payment terms, not disclosing key information on shipping or receiving practices, or withholding other key information which assists the seller(carrier) in developing a fair rate, only prolongs the time line of the RFP and/or results in proposed rates that do not reflect all the operational components. Since most transportation contracts do not guarantee shipments and pricing and usually have a 30 day out clause for either party, little is gained by being opaque in the negotiations. A carrier can simply not accept freight tenders or a shipper not tender shipments to the carrier. Being transparent and eliminating any gray areas for the carriers will result in better quality rates being proposed the first time.
Joe NGNF Lombardo Nice Guy No Freight