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IT Procurement Handbook for SMEs by David Nickson

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WHAT TO NEGOTIATE

The following sections describe items that you are likely to negotiate in a procurement. Keep in mind that you need to consider all negotiable items as an overall package: do not lose sight of the overall cost of ownership when considering an individual item.

Payment terms

The most obvious being ‘how much?‘, the next being ‘when?‘. You can always offer a supplier a smaller sum than they are asking for and see what happens: they can always say no. You can also suggest staged payments or instalments. For anything that is at all project based you should negotiate staged payments that are linked to successful delivery: do not pay everything upfront.

Volume

Working on the principle that there are economies of scale then the more ...

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