It is always a good time to negotiate if you can, but the best time to negotiate is when you are relatively strong. You may not be aware of your strength or weakness and neither may the supplier. Be alert to a larger than normal requirement for a particular product that you frequently buy. This is one of the times that you may have an advantage that will yield big savings.

Try asking your regular supplier for a new quote based on the larger quantity. Ask other suppliers for quotes so you compare with the old terms and conditions you were receiving.

You will be prepared to negotiate good deals by keeping up-to-date about the state of the marketplace. You can quickly take action to lock-in prices or place larger orders when you know supplies are going to become short for one reason or another. For example, you can begin negotiating if you hear about weather conditions that affect the production of the product you buy or you learn that one of several suppliers is having financial problems.

Begin negotiating if you suspect a supplier is about to raise prices. Don’t wait for the announcement when you will be on the defensive. By taking the lead you may not eliminate any expected increase completely, but you may reduce the amount or may postpone the increase. Always remember that time is money. In addition, there is a good chance the supplier’s intention will be changed by your quick and prompt action.