# AI Negotiations (Beta)

This guide covers how KIT, our AI-powered negotiation assistant, supports buyers during the RFQ process by facilitating pricing and payment term discussions with suppliers.

KIT engages suppliers in a structured, conversational flow designed to improve commercial outcomes while respecting your sourcing strategy and configuration.

### 1. Create a New Round

1. Go to the **Event Details** screen for your RFQ.

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2. Click **“Run new round”**.

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3. In the popup, choose **“Negotiation”** as the round type&#x20;

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1. Set the **Close date and time** for the round, along with the negotiation parameters
   1. **Acceptable Price Reduction (Minimum)** – The lowest discount you will accept.
   2. **Target Price Reduction** – The ideal discount you’d like to achieve.
   3. **Enable Payment Terms** (optional) – Toggle this on if you want KIT to negotiate payment terms as well.
      * If enabled, set **Acceptable Payment Terms** and **Target Payment Terms** (e.g., Net 60 vs Net 90).
   4. Once parameters are set, launch the round by clicking **“Create”**.
2. Complete the form and click **“Create”**. The round will open.

<figure><img src="/files/bE7q9Aguc0aL4k7yS2Q3" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/7JlL47akPa8CuC52mCJu" alt=""><figcaption></figcaption></figure>

### 2. KIT Engages Supplier(s)

* KIT sends an introductory message and waits for the supplier’s confirmation to proceed. KIT engages all suppliers in the round  (i.e. multiple negotiations at once)

<figure><img src="/files/zJAXTcXk9eAuFm9OyncO" alt=""><figcaption></figcaption></figure>

* If payment terms are enabled, KIT will negotiate those as part of the discussion.

<figure><img src="/files/MeimoA37ySaVfOtC7tNI" alt=""><figcaption></figcaption></figure>

* KIT then guides the conversation toward improved commercial terms, asking clarifying questions and making proposals aligned with your configured strategy.
* The supplier replies and KIT responds with negotiation communication until agreement or termination.

<figure><img src="/files/W446rCnzGLWMtQaCFpUu" alt=""><figcaption></figcaption></figure>

### 4. Monitor Negotiation Progress

* In the **Event Details**  you can view:
  * Negotiated prices from all suppliers
  * Negotiated payment terms
  * Full chat transcript between KIT and the supplier
* You can open previous rounds (if any) and compare supplier responses across rounds — though in KIT’s negotiation scenario you may run just a single focused round.

### 5. Final Supplier Quote Submission

* Once terms are agreed, the supplier submits the final quote eligible for award in this round
* **Important Call‑out:** If a payment term outside the pre-set standard terms available in Fairmarkit was accepted , KIT will instruct the supplier to **enter the agreed payment term in the “Additional info for buyer” section** of the quote submission form.

Supplier View

<figure><img src="/files/51IU1tWv0jXGxN0sCDax" alt=""><figcaption></figcaption></figure>

Buyer View

<figure><img src="/files/sPQpksswESd3wiyLjGV8" alt=""><figcaption></figcaption></figure>

### 6. When Negotiation Doesn’t Reach Agreement

If after **three exchanges** there is no agreement:

1. KIT asks open‑ended questions to understand the supplier’s constraints.
2. KIT acknowledges the supplier’s position, expresses appreciation, and indicates that the final position will be shared with the buyer for review.
3. The negotiation round closes without implying outcomes, competition, or awarding decisions.

> **Threshold Acceptance Logic**\
> KIT follows your configured thresholds when negotiating:
>
> * **Better than target** — Acceptable. KIT may accept an offer that exceeds your target (e.g., deeper discount or longer payment terms).
> * **Below acceptable minimum** — Not allowed. KIT will never accept a price or term that is worse than the minimum threshold you’ve defined.
> * **Between minimum and target** — Negotiable. KIT will aim for the target but may settle within this range if justified.
>
> This ensures KIT negotiates confidently but always within the boundaries of your sourcing strategy.


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