Negotiate with wholesale suppliers using your max buy price

Asking a supplier for a lower price works best when you know the exact number you need. Here is how to work it out and ask for it.

Start with the number you need

Your maximum buy cost is the highest price per unit at which a product still meets your target ROI and minimum profit. It already includes Amazon's fees and your own costs for shipping, prep and inbound. Anything above it means the product misses your targets.

Work out the discount, not just the price

Suppose a supplier charges $15.00 and your maximum buy cost is $12.80. The gap is $2.20, which is a 14.7 percent discount. That is a very different conversation from "your prices are too high", because you can say exactly what you need and why.

Judge how realistic the ask is

• Up to about 15 percent: a volume discount on a larger order is a reasonable request.
• 15 to 30 percent: a stretch. Consider a bigger order, a different pack size or a longer commitment.
• Above 30 percent: suppliers rarely agree. Look for another source for this product.

Put a value on the saving

Multiply the discount per unit by the quantity you plan to order. A $2.20 reduction on 500 units is $1,100, which helps you decide how hard to push and what you can offer in return.

Check that price is the only problem

A lower price cannot fix a product that Amazon sells itself, that has a brand complaint risk, or that sells too slowly. Negotiate only on products where the price is the one thing standing between you and a BUY. Wholesale Analyzer shows the target price and discount for every product, and lists the products that would become BUY with a realistic discount.