After the budgeting period ends, companies – both small and large – move from the planning phase to the execution of purchases and investments. January marks the most active period for procurement departments and for professionals responsible for cost optimization and generating savings for their organizations.

Labor, material, and service costs are increasing – as they do every year.
When planning their 2026 budgets, companies had to account for cost increases of at least approximately 4%, in line with inflation from the previous year. However, not all of these costs can be passed on to product or service prices, which makes contract negotiations and renegotiations a necessity.

Effective negotiations are a process that includes:
1. Thorough preparation – analyzing needs, market conditions, and available options.

2. Understanding the other party – empathy enables solutions that are beneficial for both sides.

3. Seeking a partnership-based approach – negotiations should not be a field of conflict, but a way to build long-term business relationships.

The effectiveness of negotiations is not limited to price alone. Cheaper does not always mean better – commercial terms, contract flexibility, and long-term business impact are equally important.

In the tendering and bidding process, most companies place price as the top criterion, assigning it the highest weight. However, it is worth remembering that price should not be the sole factor when selecting a supplier, especially when the cooperation is expected to last for a year or even several years.