LP Magazine

MAY-JUN 2019

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

Issue link: http://digital.lpportal.com/i/1121134

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Page 53 of 84

A negotiation is a planned engagement; it takes time to do things right, and both sides need to be honest with the outcomes. If basic protections for both companies are unattainable from the beginning, the negotiations quickly derail, and frustration will be introduced. This misstep causes delays in time, and many times, ultimatums that neither party wants are positioned and throw the planned negotiation timeline out. SULLIVAN: When bringing in new products or solutions, it is a major misstep not taking the time to meet with several solution providers to find the best product at the best price. Sometimes people take the easy route and see something they like and don't take the time to see what similar solutions are being offered. When you are spending your company's capital, you must treat it like you are spending your own money. KLEINMAN: Sometimes a peer provider is so consumed with securing a new foothold, they will compromise commonly accepted industry standards by loss leader price cutting or exposing themselves to severe potential loss liability by virtue of agreeing to contract terms that reputable providers would normally never consider. Not only does this result in a one-sided deal against the provider, but also it can permanently jeopardize how the retailer will forever view that provider and maybe even the entire industry. What are some of the missteps you have seen from companies submitting RFPs that are clear signs to stay away from? SULLIVAN: The most common is when a vendor's price is drastically low and unattainable to provide the service requested in the RFP. In that case, they likely just want your business and will not be able to deliver. At Lowe's, if an RFP came with a major business impact, such as fire, burglary, CCTV, or EAS, we could override a procurement recommendation if we could show there was a business case that could cause an impact to the business beyond the potential savings of another solution provider. I am not sure that option exists in a lot of companies. 53 LP MAGAZINE | MAY–JUNE 2019 "We always hope to end up with a contract that reflects a true partnership—one where the solution provider has the ability to make a reasonable profit in return for the retailer receiving the services they desire at a fair price and at a high level of service." – Robert Kleinman, AFA Protective Systems

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