Over-Reliance on Price

In Asia Pacific, negotiations too often revolve around price. Procurement leaders pride themselves on extracting discounts, but focusing narrowly on cost can erode overall value. Delivery timelines, warranties, service levels, and payment terms often carry equal, if not greater, weight.

High-performing negotiators look at the total value equation. They identify where concessions on one variable can secure significant gains elsewhere. For example, trading extended payment terms for stable pricing can strengthen cash flow while maintaining supplier relationships. CEOs must push their teams to adopt this broader perspective to avoid short-term savings that harm long-term performance.

If you’d like your teams to negotiate on total value rather than just price, please email Negotiation@meshadv.com or Contact Us.