Tricks, Tactics, and Techniques...5 Things Purchasing Professionals Do To Influence YOU!

A little over a year ago I did a month-long research project on the "Purchasing" profession. In that month I interviewed over 25 purchasing professionals, went through numerous online classes, and read every negotiation/purchasing book the national association recommended. When I decided to start this project, I had no idea what I was getting myself into. In this blog I am going to share, with you, a few of the tactics and strategies that purchasing professionals, around the world, use to influence sales professionals!

Some thoughts to consider before we start...

1. This information is not industry specific. I interviewed purchasing professionals from wide range of industries.

2. Not all purchasing professionals fall into these categories. When searching for purchasing professionals to interview, I asked for the toughest, most aggressive purchasing professionals out there. The reason for doing so is so I could illustrate the extreme...which would make everything else a cake walk!


That being said...let's get started!


Who are these "purchasing professionals"?

- They are some of the most intelligent and passionate professionals I have encountered.

- Purchasing professionals live, eat, and breathe negotiating. This is not a hobby for them...it is their life!

- They are some of the most consistent learners I have ever seen. Purchasing professionals are regularly reading, going to workshops, and listening to industry audio programs.

-They are extremely competitive! Almost every individual I interviewed had some history of playing a highly competitive sport. They don't only want to beat us...they want to dominate us!


In the next section we will discuss 3 things...

1. I will illustrate the strategy used....

2. What the purchasing professional hopes to gain by using it...

AND

3. How we, as sales professionals, can defend these tactics!




Price Is Too High - This is one of the most used and most effective strategies used in the purchasing profession. This might as well be an introduction for some PAs. Purchasing professionals sometimes have not even considered the price but they feel it is a great way to start the conversation!


Goal of PA- To get the sales professional out of their comfort zone. The number one goal of a purchasing professional is to identify 3 things... - Will the sales professional break on their price? - How fast will the break? - How far will they break? The more price is addressed or defended...the more power it has in a negotiation!


Our defense- stand our ground. If we break on our price right out of the box, the purchasing professional will say to themselves, "Wow, they are breaking already! If they are dropping the price this fast then they must have some significant room to move!" In response, we can also ask one of these three questions in response... PA Statement - "Mary, I am sorry but you product is too expensive!" Our Answer- 1. "Ok John...help me understand how you evaluate price. Is it cost of ownership or the initial cost? 2. "Compared to what?" (definitely an edgier answer but will let them know we are holding firm) 3. So! It's worth it! (very edgy response...but can be extremely effective in the right scenario)





Nice Guy- This is where a purchasing professional will attempt to create a friendly relationship right off the bat. They may ask about our family, compliment our professionalism, or even ask about our hobbies. They will do whatever they can to get us to like them!


Goal of PA- To get us to let our guard down. It is a very effective tool to get us to compromise our position...because we enjoy working with them. They feel that if we like them then we will be willing to give up a chunk of the margin.


Our defense- Think about our family, our home, our car. Will that individual send our children to college? Will that friend pay our mortgage? We get up each day to tend to our business and that is what we must focus on...our business. If that person has a genuine desire to establish a relationship with us, they will understand our position.





The Guilt Trip- Have you ever made a mistake during a meeting? Have you ever showed up late to an appointment? Quoted a customer the wrong price? Didn't know an answer to a question you should have? Have you ever forgotten to call a prospect back? If we have answered yes to any of these then we have given the purchasing professional a gift. They will take our mistake and use it as leverage in the negotiation.


Goal of PA- To make us feel so bad for our mistake that we are willing to drop the price just to make it up to them. This one is not used as often but, when used, is almost always effective! - Salesperson- I'm sorry...$150 is as low as I can go. - PA- That is as low as you can go?! You showed up 30 minutes late and you are lucky to be sitting in my office right now...and now you are saying $150 is as low as you can go? - Salesperson- I apologize for being late. I guess I can do this for you for $140. (their forgiveness becomes a concession they have given us. Now that they have given us a concession...they want one from us!)


Our defense- Apologize and move on! We will make mistakes and it is crazy for anyone to believe that we will be perfect. That being said, should we give away $10,000 of our company's profit for being 15 minutes late? I don't think so. We must apologize and jump right back into the negotiation...without baggage!





The Nibbler- is when we have come to an agreement, we are about to sign papers, and the purchasing professional says, "You do have a rebate program don't you? Do you give discounts for paying early? Training for our people is included in this price, right?


Goal of PA- is to give us a taste of the sale and drive us to start giving things away. They use this tactic to get us right on the cusp of the sale and begin asking for a few more things. Sales professionals can be much more giving when the salivation begins.


Our defense- When we begin giving things away it can become a slippery slope. Part of the reason this tactic is such a success is because is is almost never recognized, in the heat of the discussion. We must focus on the big picture and not get tempted by the idea of closing a sale. At this point in time we must pause and say, "Are these things important to you? If you would like, we can re-work the contract to make sure that you get everything you want. Would you you like me to begin re-working the contract?"





The WOW!!- If we have a product that is relatively pricey in the industry the purchasing professional may say..." $60,000?!?! WOW!!"


Goal of PA- To get us to begin lowering the price or start giving away concessions. They want us to feel like we are about to get kicked out of the office. This is really just a strategy to get us to question our position...and it is very effective.


Our defense- Stand our ground. We may say something along the lines of, "Yup $60,000 is right. I would sell it for $75k if they would let me." If we are confident in the price of our product they will hear it in our voice. If we second guess the price...so will they!






These are just a few of the many tactics used in the purchasing profession. I hope this helps and please let me know if you have any questions regarding the material.

Jason@aplayersonline.com

A Life Time of Selling

First let me say that there is nothing more exciting than seeing your spouse genuinely enjoy their job. My amazing wife just started her first job and could not be more in love with the company and her team members (She is the new dietitian/nutrition coach for Life Time Fitness in Mansfield, TX). Over the past few weeks we have spent hours talking about creative techniques, tactics, and strategies to help her create a solid client base from the very beginning. Before she ever started working at Life Time Fitness I shared a thought with her that my dad shared with me a few years ago (and a friend of his, Shep Hyken, shared with him years before)...

My dad, being in the speaking industry, was told "its not about doing the deal...its about getting the deal!" What Shep meant by that was that we may be the best speaker, most knowledgeable personal trainer, or most well-educated dietitian in the area but if we can't sell what we do...we'll starve!

After sharing this thought with my wife we quickly drifted into a conversation about what she can do to be the best in her company at "getting the deal". In listening to her rattle off a number of creative ideas I began to realize that most of her ideas involved doing things that fell outside her "billable hour/s" of consultation. What she was really talking about is adding value to something she already considered valuable (being the service she offers). Too many times we feel that our product or service holds all of the value. It is amazing how many times a customer will pull the trigger on a product because of the value we bring to the table.

So how can we bring value to our customers outside of the product and service we provide?

1. High Impact Questions...

To identify need, we must focus on asking high impact questions. High impact questions are questions we ask that help us learn more about our customers and their current situation/predicament. When we learn how to ask effective high impact questions, it can also help us identify a customers "hot-buttons". An example of a high impact question that dietitian could ask would be, "You obviously seem very serious about eating healthier, why is changing your diet so important to you?" In this situation, the client may say, "Well, I bought this red dress last year and can't fit into it anymore. My goal is to be able to wear it to a New Year's party this year." It is questions like this that help us understand what our clients consider to be a "big win"!

2. Build trust and show commitment...

Now that we have been informed of the motivating factors behind our customer's actions, we can focus on reinforcing the feeling of "wearing the red dress to the upcoming New Year's party" and how we will help them get there. When they begin to trust us and associate us with their "big win", that is when we move from being a "sales person" to being a "trusted adviser"! This may come from a short text message to the client saying, "I'm committed to helping you get in the red dress...are you?" What all does this achieve? This not only shows a reciprocated commitment to the goal but it also deepens the relationship. Text messages, at least for now, typically come from close friends and family members. When we start opening up different channels of communication, it builds trust and trust is what leads to long-term relationships.

3. Communicate regularly...

Buyer's Remorse typically comes when there is a large gap between a purchase and when an individual starts experiencing the value of the product/service. If we can close that gap then we can eliminate most buyer's remorse. This theory is one reason why follow-up is so important. This doesn't mean we need to call/text message twice a day but it is vital to stay in contact with our customers on a regular basis. If the only time we call is to sell something then we become associated with a sales person...and being known as a "sales person" will typically eliminate any chance of a long term professional relationship.

"If all we provide is a transaction, we will typically fall short of long-term customer satisfaction!"