BayGroup International’s President, Ron D’Andrea, recently took part in a thought-leader panel discussion hosted by ES Research. The subject: “Selling To and Negotiating With Today’s Tough, Strategic Procurers/ Buyers/ Sourcers.”
Here are some of Ron’s comments:
- “A major change we’ve seen in the last four years is that our clients no longer think ‘how can I avoid the purchasing group,’ but instead focus on ‘how can I engage them in helping make the right decisions.’ In many companies procurement is now a cabinet-level position. They are looking for ways to add value, to have better relationships with their internal partners, and to be seen as an asset to their firms. Our job as sales professionals is to help them accomplish this.”
- “We’re often asked ‘how do I deal with tough tactics from purchasing managers? Our advice starts with this: Don’t take it personally, and don’t get angry. Realize that in some organizations this is what buyers have been taught to do, and they do it because it works…with their weaker vendors. The key is to realize that there’s always tension in negotiations like this. You may not be able to change the process, or their approach, but you can anticipate it and plan for superior results.”
- “To be successful, you have to understand the role and function of procurement in the organization. There are often formal cost-reduction initiative that affect the approach procurement takes to negotiations. To win on value rather than price you need to get down to specifics, and ask question like ‘What are the lead times and the need for reliable supply? What are the service-level requirements? What are the costs and risks of switching suppliers?’ The most successful sales teams create a checklist of questions like these, and use it to broaden the discussion from price to other areas of differentiated value.”
Want to hear more? You’ll find archived recordings of this and other ES Research thought leader panels here.
Want to learn more about BayGroup International’s approach to value-added sales negotiation? Visit here.
