Negotiations: The Tesco Technique

Do Your Negotiations Say It With Flowers?

Do Your Negotiations Say It With Flowers?

Are you a tough negotiator like Tesco .. or do you have more sense?

The recent spate of media coverage over the tactics that the supermarkets use with suppliers has exposed many of them to the public gaze.  As long ago as the 1990s I supplied a number of supermarket chains so the current stories do not surprise me.  I’ve been there and have the T-shirt.

I dumped Tesco, Sainsburys and several other supermarket chains before they controlled the business I then owned. It was tough but subsequently I was much better off.

The thing is companies like Tesco negotiate hard.  They seem to believe in Win:Lose where they are always the winner.  If you object you get told they will delist you.  I never regarded this as bullying.  I considered it as bullying.

It is also a very poor negotiation technique.

Now that many supermarkets are suffering the loss of market share are the suppliers helping them?

No.

They are deserting the majors and moving to the foreign chains that are soaking up the market share of the supermarkets that thought themselves invincible

Lessons for Providers

Live by the sword, die by the sword.

If you beat suppliers or customers with unfair terms and bully them into accepting your terms they will, sooner or later, desert you.

Win Win means they are far more likely to support you when times get hard.

 

 

 

 

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