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The Key Competency of a Merchandiser

One of the most important competencies of a merchandiser is his ability to negotiate properly with a buyer or a supplier. He usually secures a successful order from a buyer at right price & other terms and conditions on the one hand with these skills. On the other hand, he is able to place an order to a right supplier at a convenient price and quicker delivery schedule to keep his goal. The most important topic of negotiations is to fix the price of the product, but the other issues include order volume, lead time, delivery and payment terms as well as logistic service.merchandisers Competency

Defining of negotiation: Negotiation, which also known as bargaining and it is a common portion of any trading. It is a process of communication & trading of ideas especially done between two parties or buyer, seller by which they make a series of demands and compromises. As to come to the desired point of mutual acceptance so that both parties get benefits from the transaction of business. It is a series of communication and discussion which may go very hard (often very tough) but running in a friendly environment in order to come to a mutually beneficial position.

The function of negotiation is not to push the other party to defeat rather work out a win-win solution so that both parties can transact business with profit simultaneously.
Why does merchandiser negotiate?
Managing ability is the main capability of a merchandiser. Communication should be short and straightforward like as a method of Kiss= keep it short and simple. A merchandiser should negotiate with a buyer/supplier for the following reasons:
l. They wish to clinch an order from the buyer and place an order to a supplier later.
2. They need to fix a cost/price of the product for mutual benefit.
3. They wish to minimize the cost or increase price of the product.
4. They need to fix production schedule & shipment plan,
5. They must determine payment terms and conditions before finalizing the order.
The basic principle of negotiation is to trade what is low value to you but of greater value to the other party, thereby reducing the ‘cost’ of success to you. But one should understand that negotiation succeeds if both of the parties mutually benefit from the outcome of the negotiation.

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