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The Negotiation Blindspot

Updated: Jun 8

Most multi-site operators take three actions when receiving service proposals:

  1. Approve without question

  2. Reject completely

  3. Negotiate extremely high proposals

What if there was a better way? Enter: NBD (Negotiate By Default)


The Math Speaks Volumes

Let's break down a real-world scenario:


Mayanoki Restaurant Group (150 locations)

  • Monthly Negotiation Goal: $50 per location

  • Annual Savings Potential: $90,000 (150 × $50 × 12 months)


Negotiation Playbook: Practical Strategies for Every Team


1. Establish a Negotiation Culture


Empower Your Team with Simple Scripts

Provide team members with go-to phrases like:

  • "My approval budget is currently at [X]"

  • "Can you work with me on the pricing?"

  • "What flexibility do you have on this quote?"


Create a Negotiation Checklist

  1. Always ask for a discount

  2. Request itemized breakdown of costs

  3. Compare with 2-3 alternative vendors, be mindful that additional proposals can incur a fee just for going on-site. This can usually be included if the service is completed but it can get expensive to always get 2-4 estimates from different vendors

  4. Look for volume discounting opportunities, see if you can bundle work with other needed services or with upcoming preventative maintenance services.


2. Tactical Negotiation Techniques


The Budget Constraint Approach

  • When a proposal comes in at $675, respond: "Our budget is constrained at $600, can you make this work?"

  • Ask if the vendor can make the $675 include any taxes and fees.

  • Even a $75 reduction matters


Volume Negotiation Strategy

  • For regional or national service providers, highlight multi-location footprint

  • Example: "We manage 150 locations. How can we optimize pricing?"


Timing and Approach Matters

  • Best times to negotiate:

    1. End of vendor's quarter/year

    2. During slower business periods

    3. When proposing long-term contracts


3. Negotiation: More Than Just Cutting Costs


The Expanded Value Negotiation Approach

Negotiation isn't solely about driving down price. It's about maximizing value in every interaction.


Strategic Value Addition Strategies

Material Inclusion NegotiationScenario: HVAC Preventative Maintenance


Potential Annual Impact:

  • Original Proposal: Standard service check

  • Negotiated Outcome:

    • Same price as original quote

    • Additional value:

      • Complimentary HVAC filters

      • Comprehensive system diagnostic report

      • Minor calibration adjustments

  • HVAC filters cost: $50-$100 per location

  • 150 locations × $75 = $11,250 in material savings

  • Enhanced preventative maintenance value



Negotiation Conversation Starters

  • "What additional support can you provide at this price point?"

  • "Are there any complementary services you can include?"

  • "How can we maximize the value of this service agreement?"


4. Practical Negotiation Training


Role-Playing Workshops

  • Conduct quarterly sessions where team members practice negotiation scenarios or share recent negotiation wins/outcomes. This allows team members to share insights from other employees.

  • Reward team members who successfully negotiate savings. This might not always be possible or economically viable but share a percentage of negotiated savings with the team

  • Example: 10% of savings goes to a team bonus pool or a team outing can be scheduled if a certain goal is achieved.


5. Documentation and Tracking


Implement a Centralized Negotiation Log

  • Track:

    1. Original proposal amount

    2. Negotiated amount

    3. Savings achieved

    4. Vendor responsiveness

    5. Hint: Sprygg is designed to do exactly this 😃

Vendor Performance Scorecard

  • Rate vendors not just on service quality

  • Include negotiation flexibility as a key metric


6. Common Negotiation Excuses (And How to Overcome Them)


"I don't want to damage the relationship"

  • Vendors EXPECT negotiation

  • Professional negotiation builds respect, not tension


"It's not worth my time"

  • $50 saved per location × 150 locations = $7,500 annually

  • $50 saved per location × 150 locations each month = $90,000 annually

  • That's meaningful money for minimal effort


"I'm not a good negotiator"

  • Negotiation is a skill that improves with practice

  • Start small, build confidence


The Sprygg Approach: The Negotiation Agent

After an initial ingestion of previous invoices and work orders, Sprygg can create a pricing model that is used to compare all new incoming service proposals. Sprygg can then make negotiation suggestions to team members who engage directly with service providers via email or SMS. This empowers teams to ask for negotiations that they might not have asked for in the past.


  • Centralizing vendor price tracking

  • Identifying negotiation opportunities

  • Building institutional pricing intelligence


Mindset Shift: Every Dollar Matters

  • Vendors EXPECT negotiation

  • Every dollar saved is pure profit

  • Consistency creates significant impact


Call to Action

  1. Implement NBD (Negotiate By Default)

  2. Train your team

  3. Track and celebrate savings

  4. Make negotiation a core business strategy


Pro Tip: Start with a goal of saving just $25-$50 per service proposal. The compounding effect is powerful.

 
 
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