What suppliers wish you knew during negotiations (and why you should care)
Most sourcing professionals step into supplier negotiations focused on one thing and one thing only: securing the best possible deal for their organization. That usually means lower prices, favorable terms, and reliable delivery schedules.
But suppliers have their own perspective and their own frustrations when it comes to negotiations. While buyers aim to reduce costs, suppliers need to balance margins, manage risks, and maintain service quality.
When your sourcing team overlooks the supplier’s point of view, negotiations can quickly turn adversarial, damaging long-term relationships and even leading to missed opportunities. On the other hand, when buyers understand what suppliers really value, negotiations become smoother, more productive, and more likely to result in win-win outcomes. Which we’re all after, in the end.
So let’s flip the script. Here are five things suppliers wish sourcing professionals understood during negotiations, and how addressing them can transform your sourcing strategy.
1. Price isn’t everything
What suppliers wish you knew
Suppliers often feel like buyers reduce negotiations to a single variable: cost. While pricing is obviously important (we’re not disputing that), suppliers operate on thin margins. Cutting too deep can threaten product quality, consistent service levels, or even their survival.
The impact of ignoring this
Overemphasis on price can lead to:
- Lower quality products or services.
- Strained supplier relationships.
- Increased risk of supply chain disruption if the supplier can’t remain profitable.
How sourcing professionals can fix it
- Evaluate the total cost of ownership (TCO) instead of just the unit price.
- Recognize the value of reliability, innovation, and after-sales support.
- Use data to compare suppliers on multiple criteria, not just cost.
2. Transparency builds trust
What suppliers wish you knew
Suppliers often feel left in the dark about how sourcing decisions are made. When buyers don’t share precise requirements, benchmarks, or selection criteria, suppliers may assume the process is biased, or that price is the only deciding factor.
The impact of ignoring this
- Misaligned proposals that don’t fit your needs.
- Frustration when suppliers feel they’re “shooting in the dark.”
- Erosion of trust, making future negotiations harder.
How sourcing professionals can fix it
- Be transparent about evaluation criteria upfront.
- Share realistic timelines and requirements clearly.
- Provide constructive feedback, even to unsuccessful bidders.
3. Long-term partnerships matter more than one-off wins
What suppliers wish you knew
Suppliers value buyers who think beyond the immediate transaction. Short-term bargaining often overlooks the benefits of strategic, long-term partnerships such as innovation, better service, or preferential pricing.
The impact of ignoring this
- Missed opportunities for collaboration and innovation.
- Higher supplier turnover and reduced continuity.
- Reduced commitment from suppliers, who are unmotivated.
How sourcing professionals can fix it
- Signal willingness to build long-term partnerships.
- Explore opportunities for volume discounts, framework agreements, or innovation collaboration.
- Recognize loyalty. Consistent business helps suppliers plan and invest in better service.
4. Unrealistic demands can backfire
What suppliers wish you knew
Suppliers often struggle with requests that are unrealistic, whether it’s overly aggressive pricing targets, impossible delivery timelines, or one-sided contract terms.
The impact of ignoring this
- Suppliers cut corners to meet demands, and the quality inevitably suffers.
- Some suppliers simply walk away, reducing your sourcing options.
- Unrealistic expectations can damage reputation and discourage competitive suppliers from participating in future bids.
How sourcing professionals can fix it
- Use market data to set realistic expectations.
- Benchmark against industry standards before entering negotiations.
- Be willing to compromise. Pushing too hard can cost more in the long run.
5. Respect and communication go a long way
What suppliers wish you knew
It might sound like a cliché, but honestly, we tend to overlook this when it comes to business. Suppliers are people, not just vendors. Negotiations that are overly aggressive, dismissive, or opaque damage relationships, even if the contract terms look good on paper.
The impact of ignoring this
- Reduced supplier motivation to go the extra mile.
- Communication breakdowns that affect project execution.
- A reputation as a “difficult” client, limiting access to top suppliers.
How sourcing professionals can fix it
- Treat negotiations as a collaboration, not a battle.
- Acknowledge supplier constraints and challenges.
- Keep communication clear, professional, and respectful throughout.
The benefits of seeing negotiations through the supplier’s eyes
When sourcing professionals recognize supplier concerns, negotiations stop being a zero-sum game. Instead, they become opportunities to create mutual value: better pricing for buyers, sustainable margins for suppliers, and stronger long-term partnerships for both.
And the benefits go way beyond:
- You get more competitive, relevant supplier proposals.
- The risk of disputes and contract failures goes down.
- Supplier loyalty and performance go up.
- New innovation and collaboration opportunities emerge.
Why negotiation-ready sourcing is the future
Successful sourcing teams combine empathy with data. They understand the psychology and frustrations of suppliers while grounding decisions in hard evidence – market benchmarks, performance metrics, and contract analysis.
With the help of AI-powered tools like Logintrade, you don’t have to choose between fairness and efficiency. You can:
- Evaluate suppliers on value, not just price.
- Provide transparent, structured processes.
- Build stronger supplier relationships that deliver long-term results.
The bottom line
There are two sides to every negotiation. They’re not just limited to buyer requirements. What suppliers need to deliver value in a sustainable way is equally important.
When you recognize supplier frustrations, you can shift negotiations from adversarial to collaborative. And the result? Better deals, stronger relationships, and fewer risks.
And with sourcing tools like Logintrade, you can balance both sides of the table: securing value for your organization while fostering productive, lasting partnerships with your suppliers.
