“Negotiation Letter/Email” ​– Template

The purpose of this negotiation letter/email is to get the supplier to agree to what
you’re asking.

This powerful template can be used as a reply to a supplier’s quote. This is a

template - feel free to adjust where you see fit and replace with your own words.
--------------------------------------------------------------------------------------------------------

Dear ...,

Thank you for your proposal. We sincerely appreciate the effort that you have put
in submitting this proposal.

[INCLUDE A SENTENCE HERE WHERE YOU PRAISE THE SUPPLIER FOR

THE PROPOSAL SENT]

I and my team reviewed the whole proposal in detail. Based on the review we
find ....

[WRITE HERE WHAT YOUR OVERALL COMMENT ABOUT THE PROPOSAL

AND THAT THERE IS/ARE 1 OR MORE ISSUES, DEPENDING ON WHAT
YOU WANT TO NEGOTIATE]

[EXPLAIN YOUR SITUATION AND WHAT YOU ARE ASKING]

[EXAMPLES OF WHAT YOU CAN USE IN THIS EMAIL TO EXPLAIN YOUR SITUATION - YOU
DON’T HAVE TO USE ALL OF THEM]

- [HOW YOUR BOSS/HIGHER MANAGEMENT HAS PUT A BUDGETARY LIMIT]

- [HOW BASED ON YOUR COST/PRICE ANALYSIS THEIR PRICE SHOULD BE LOWER
THAN QUOTED]
- [YOU WOULD LIKE THEM TO BE YOUR SUPPLIER AND NEED THEIR SUPPORT]

I hope and trust that you would send us another revised offer by incorporating the
following:

- [LIST DOWN WHAT YOU ARE ASKING FROM THE SUPPLIER - EG

LOWER PRICE, BETTER TERMS OF PAYMENT, FREE TRAINING,
LONGER WARRANTY ETC]

If you cannot meet these requests I’m afraid that [STATE WOULD WOULD
HAPPEN IF THEY DON’T AGREE WITH THE ABOVE EG LOOK AT OTHER
SUPPLIERS OFFERS, OR REVIEW THE EXISTING RELATIONSHIP].

web: ​purchasing-procurement-center.com​ email: ​info@ppc-inc.com​ phone: +1-312-3008968

 I truly hope to get your agreement on the above so that [STATE A BENEFIT
SUPPLIER WILL GET FROM YOU EG WE BECOME YOUR LATEST
CUSTOMER/WE CONTINUE OUR RELATIONSHIP]

Looking forward to your reply latest by [STATE THE DATE WHEN YOU EXPECT
THEIR REPLY LATEST].

Best Regards
YOUR NAME

web: ​purchasing-procurement-center.com​ email: ​info@ppc-inc.com​ phone: +1-312-3008968

 SAMPLE LETTER BELOW

Dear Janet,

Thank you for your proposal. We sincerely appreciate the effort that you have put in
submitting such a comprehensive proposal for our company.

We do understand that you would have spent considerable time and resources to come
up with this proposal which outlines in detail how you are going to provide what we need.
[​This is an example where you praise the supplier]

I and my team reviewed the whole proposal in detail, and overall we are happy with it. At
the same time there’s one fundamental issue which will probably stop us from giving this
contract to you.

Let me explain:

Our Vice President has given us a specific budget for this contract. He also has
instructed our contracts team to get another 3 quotes from other suppliers, with a view to
have a competitive pricing quoted. ​[​Explaining your Boss instructions]

On my side I managed to convince him that we should hold on from getting quotes from
other suppliers, since in the past you have done a very good job. I promised him that we
are going to get this contract within the budget that he gave. He agreed to this, but if we
cannot get your proposed price within our budget, then we would have to open this to
another 3 suppliers. ​[​Showing you are on their side]

Again I personally would love to have you as our supplier. But to do this we would need
your price to be better than what you have quoted in your initial proposal. Your price
should be 9% lower at a final price of USD 177,500.​[​Details of what you are asking]

If you cannot offer this price, I’m afraid that we would have to look at getting other
suppliers for this job. ​[W
​ hat might happen if supplier does not agree to your
request]

Again I hope and trust to get your acceptance of this offer from our side. I trust you
understand that in the past we have been loyal clients to you and I am sure that in the
future your flexibility in your offer should result in future work for you and your
organization.​[​Benefit to supplier if they agree to your request]

Looking forward to hearing from you at most by 27 October or earlier. ​[​Date you expect
their reply]

Best Regards

web: ​purchasing-procurement-center.com​ email: ​info@ppc-inc.com​ phone: +1-312-3008968