Do we actually have a problem in buying? Aren't we smart, intelligent? At least I had few takeaways while buying:

• While purchasing a new product I am never sure to what extent it can be negotiated. We go on the road, like something and ask for the price. Let's say he said 300, we ask for 250 and he says take it. Usually people feel happy and take it. But I always get this feeling, I should have asked for 200 only.
• I feel embarrassed to negotiate with the people I already know because the relation comes into the picture as I have known this person since a long time
• Most of the times I am never sure of the price I am buying the product for, that too when it is a bulk or premium purchase. We always have a friend who buys it for a lesser price than what we buy and we get to know only after we bought it.

In the month of November when Nitesh and I were discussing on the idea of effective negotiation, I am sure there is a problem that needs to be addressed. But I am not sure of the size of the problem. With the very less experience or I would say no direct experience in procurement I felt I am an individual and I buy products mostly one time so I may not have an idea but every company would definitely have an insight on the product they are going to buy i.e. they would purchase it a better price, they will have experienced people to work on it. So, how much value addition can we actually make?

To learn more about procurement and tell them our plan of creating savings while buying I have started meeting people like Directors, CXO's, Purchase heads etc. The more people I meet, it turned out to be more and more interesting and every meeting I had there is a new thing to learn about.

Few interesting questions/conversations I had:

• "I have been in this industry before you were born, how do u think u can help me "
• "I buy at the prices which no one else in the industry can get"
• "We have digitalized everything "
• "Money is never a problem to me, it's the reliability and quality "
• "How can you save more than our procurement specialists?"
• "Our vendors are much unorganized, they can't use the system"
• "I talk to companies directly, I don't do business with local vendors"
• "We have our own ERP"
• "Our Vendors are the best Vendors"
• "My prices are fixed at the start of the year, I don't do negotiations every time "
• "The amount of research we do, no one else can do "
• "Our brand and reputation in the market ensures we get the best price "
• "Our vendor management team is one of the best "
• "I personally take care of the negotiations, I don't leave it to my team "

Do you also have the same questions? With all the systems/approaches above, are you sure that the prices at which you are buying are the best?