One thing I found it’s helpful that we should never work and rely on only one vendor. So, for this way we always have a back up plan for negotiation and compare on the quality of product/ service as well as capturing the market trend quickly. Secondly for sure is to build good relationship with vendor so that we always be the first one who knows the change or update news from the market as quick as possible

Understanding the market and the cost of goods is an important place to start. Using sugar as an example, it will be purchased on contract. You should know where the sugar is originating and know if weather conditions have impacted cost as well as global shipping etc. For sugar there is the price of the sugar cane or sugar beets, shipping, cost of paper for packaging freight etc. Once you understand if prices are up or down, you can negotiate from a better angle. For example this year, the commodity sugar is down in cost by more than 20%. All factors need to be weighed but you need to be prepared.

To be an effective price negotiator, one must have at least a basic know how, of the various stages involved in the making of the product or service. Once a vendor announces a price hike, seek from him, at which stage the escalation has occurred and what factors caused it. Either he will accept that the price hike is his "economic profile correction" or it is a genuine hike at a certain stage of production....and this specific increase can be accurately checked in the market. If found true, then you also undertake the correction OR discuss with the vendor alternatives available in "that particular stage" to keep the price similar.

Navigating a vendor price hike requires a balanced and informed approach. Begin by researching market rates to assess whether the proposed hike is justified and use this data to negotiate competitively. Highlight the value of your long-standing partnership, emphasizing consistent orders or timely payments, to leverage goodwill. Keep alternative vendors or solutions in mind to strengthen your position, but communicate a preference for maintaining the current relationship. If possible, negotiate non-price terms like improved delivery times or payment flexibility to offset the increase. What tactics have you found effective when renegotiating with vendors?