To truly understand procurement, you’ve got to understand where they come from. They’ve likely been to the same negotiating trainings as you. They’re experienced and they know all the tactics sellers use. They recognize Seller 101 and if they feel they are being manipulated, they’re going to put up the walls.
When in doubt, they default to price.
Why do they do this? It’s what they know. Frankly, these tactics work if they’re dealing with a seller who plays their game. They’re assuming you’ll be a willing victim to their power struggle.
Recognize their tactics and determine what’s driving their interests.
Professional buyers often minimize other important decision criteria that they feel may weaken their position. Ironically, this self-imposed denial actually makes them a less informed buyer, unable to effectively distinguish between alternatives. If they fall victim to their own tactic, they still have to find some way to justify their purchase recommendation to their internal customer. When in doubt, the easiest default is price. It’s your job to help them see the benefits of widening the decision criteria and therefore, keeping value in the deal.
This is why it’s so important to establish the value your solution brings to the customer throughout the sales process. It pays huge dividends in the final stages of negotiation. Being in “Command of your Message” early is THE best practice to avoid this pitfall.
The professional buyer rarely has the ultimate yes. Still, it’s your job as a seller to make procurement your ally. Determine why they are asking for certain components in the deal. What’s the underlying interest? Once you uncover this interest, you can negotiate with them in a way that aligns the value of your solution with their driving interests.
To improve your own negotiating effectiveness, you need to help buyers see the benefits of a value-based approach. The first negotiation with old school negotiators is often all about HOW you’ll negotiate (before we negotiate the items on the table). Managing old-school tactics with a value-based approach is key to a successful negotiation.
Remember, there’s as much difference in how you sell, as there is in what you sell.
