Sales Negotiation: Three Strategies for Improving Results With Purchasing Organizations

by BayGroup International on March 25, 2013

hIn a recent study by ES Research Group, 72% of buyers and 62% of sellers agreed that buyers have gained power in supplier negotiations over the past three years. In many companies, purchasing organizations have gained C-level influence, reflecting a growing sense that effective supply chain management can drive strategic success.

At the same time, new developments in online purchasing technology (such as e-Auctions and online bid management processes) have made it difficult for sales teams to establish their full value. This “power shift” has important implications for today’s B2B sales teams.

What does it take to succeed in this new, more challenging sales negotiation environment?  Three proven strategies were shared by BayGroup International’s Ron D’Andrea and Paul Hennessey at a recent webinar on the subject:

  1. Move beyond price to frame new value in order to avoid commoditization of your solution and premature focus on pricing in your negotiations.
  2. Negotiate the process before the price in order to gain access to critical information and influential people who can help you shape a proposal that is easier to defend in negotiations with purchasing managers.
  3. Manage the tension to maximize results in order to avoid costly negotiation mistakes that give purchasing professionals the

You can learn more about these proven strategies (as well as the research mentioned above) by viewing the on-demand recording of the webinar “Sales Leadership:  Helping Your Team Succeed in the Changing World of Purchasing Negotiation.”

You can download a complimentary copy of the “State of Sales and Purchasing” research study here.

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    Debbi Dale March 27, 2013 at 1:06 am

    I agree. Procurement is leading most organisational strategy and buyers need to develop SMART Strategies to address this “intervention” that will only get stronger over the next five years.

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