When is it appropriate to negotiate with a supplier?

Negotiating with a supplier during the maturity period of a product is appropriate because this stage typically involves stabilizing production costs and pricing strategies. At this point, the supplier has established their processes and the market demand for the product is predictable. This creates an advantageous environment for negotiations, as both parties have a clear understanding of the product's performance, quality expectations, and market conditions.

Moreover, during the maturity phase, suppliers are more likely to seek ways to maintain their competitive edge, which can lead to more favorable terms for the buyer. This might include discounts for bulk orders, better payment terms, or additional services that could enhance the overall relationship between the supplier and buyer.

Negotiations before a product launch may be more speculative as the supplier’s capability to meet undiscovered demand could be uncertain. Similarly, negotiating during the introduction phase may not yield the best terms since the dynamics of the market and the product performance are still being established. Therefore, focusing negotiations on the maturity period leverages the supplier's established position and market experience.