Suppose a facilities group buys cleaning across 25 sites. Some contracts include consumables; others bill them separately. One offers a 24-hour response, another permits a 72-hour delay. A rate-per-site comparison would be close to meaningless. The first negotiation task is to define the service being compared.
1. What does the current contract really include?
Get the service specification, pricing schedules, variable charges, volume commitments and out-of-scope fees. Comparing base prices without these details is a shortcut to a misleading conclusion.
2. When can terms actually change?
Review notice periods, renewal mechanisms, minimum commitments and any exclusivity provisions. Seek legal input for clauses requiring legal interpretation.
3. Who relies on the supplier?
Operations, compliance and site teams often know which failures would disrupt the business. Their input should constrain the negotiating mandate before a cheaper proposal is evaluated.
4. Is the alternative available when you need it?
An alternative bid is not leverage if mobilisation takes four months and your renewal is in six weeks. Check capacity, geography, references, implementation timing and any data or equipment transfer before making a switching threat.
5. Is the comparison like-for-like?
Normalise the quote for quantities, quality, warranties, delivery, rebates, currency and payment terms. Ask whether the apparent saving survives a total-cost comparison.
Where an incumbent cites market inflation, check whether the proposed index actually matches the cost being bought. Our ONS-backed supplier price monitor provides public context for cleaning, freight, warehousing and support services; it is not a substitute for a like-for-like quote.
6. Who has authority to agree terms?
Set approval thresholds and boundaries for contacting incumbents. Avoid surprising an important supplier with a negotiation mandate that the internal account owner never approved.
7. How will finance confirm the saving?
Set the baseline and verification rules before negotiations begin. Decide whether contract-rate reductions, invoice-backed savings and avoidance of proposed increases will be treated differently.
A focused procurement savings engagement follows this sequence: discover, establish the baseline, negotiate, secure approval, implement and validate. The results become much easier to defend when each decision has an owner.