How to Avoid Being Commoditized by Procurement
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The document outlines five tactics commonly used in procurement sales negotiations and offers counter-strategies for sales professionals. It emphasizes the importance of understanding procurement's objectives and building relationships with business unit buyers to achieve successful sales outcomes. Sales professionals are encouraged to prepare, leverage relationships, and maintain the perceived value of their offerings against procurement's tactics.
How to Avoid Being Commoditized by Procurement
- 1. 5Tactics to Use with Procurement SALES NEGOTIATIONS:
- 2. • Dealing with third party negotiators • Blind RFP’s • Reverse auctions • Commodity pricing • Hardball sales negotiating tactics Sales negotiations with Procurement is an ongoing struggle:
- 3. By understanding Procurement's objectives…
- 4. It’s easier to work with Procurement and achieve a successful sales outcome
- 5. 5 Common Negotiating Tactics used by Procurement and their Counter-Tactics
- 6. Deflect or Discredit your Value Proposition 1 PROCUREMENT TACTIC:
- 7. To deconstruct your value proposition so that they can then compare prices among vendors PROCUREMENT GOAL:
- 8. Build stronger relationships with the business unit buyer COUNTER TACTIC:
- 9. Develop strong customer coaches and present a compelling business case for your solution COUNTER TACTIC:
- 10. Commoditize and Control Responses 2 PROCUREMENT TACTIC:
- 11. Procurement want to do an apples-to-apples comparison with your competition PROCUREMENT GOAL:
- 12. You need to convince the business unit buyer your product is different COUNTER TACTIC:
- 13. Employ a value based sales approach that quantifies the overall value of your solution COUNTER TACTIC:
- 14. Present a total solution that can’t be dismantled into component pieces and commoditized COUNTER TACTIC:
- 15. Limit Access to Business Contacts 3 PROCUREMENT TACTIC:
- 16. Procurement doesn’t want a business decision that undermines or supersedes the procurement process PROCUREMENT GOAL:
- 17. Build a strong network within the business organization COUNTER TACTIC:
- 18. Leverage inside and outside resources before Procurement puts a gag-order on the vendors COUNTER TACTIC:
- 19. If you’re told you can’t contact anyone outside of the RFP process...
- 20. ...you have a business decision to make in terms of the risks and rewards of following those rules
- 21. Use Past Performance Against You 4 PROCUREMENT TACTIC:
- 22. Procurement likes to have information about vendors to drive down prices and negotiate a commodity deal PROCUREMENT GOAL:
- 23. Be proactive. Anticipate issues and concerns that may come up and have your responses prepared COUNTER TACTIC:
- 24. Good Cop/Bad Cop and Mystery Decision Maker(s) 5 PROCUREMENT TACTIC:
- 25. Procurement present additional decision makers or hoops to jump through late in the process PROCUREMENT GOAL:
- 26. Determine who all the decision makers are and how the decision will be made COUNTER TACTIC:
- 27. Procurement wants to keep all of the vendors in the game as long as possible in order to provide leverage against the competition
- 28. Sales professionals typically have more power in this situation than realized
- 29. Don't let your sales solution be diminished or commoditized by Procurement
- 30. As a sales professional, you must be prepared to counter these tactics…
- 31. …by planning, leveraging your relationships, and reinforcing the shared interests and value proposition for your customer
- 32. Access Expert Advice on Essential Sales Negotiation Skills Download eBook COMPLIMENTARY OFFER