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!"

Get up you EMPLOYEE!!

I have been married for about a month now and we already have a new addition to our family. Her name is Mango and she is a 7-week old black pug puppy! At 4:15, the morning after her first night, I decided to take her out to go to the restroom and play a little bit. I normally wake up around 4:30, so after I was out there for 15 minutes my "unique" alarm went off on my phone. As I cam e back in from taking Mango outside my wife asked me,

"Is there any way you can change your alarm ring to something other than Led Zeppelin? Not everyone likes to listen to classic rock at 4:30 in the morning. Oh yea...why does your alarm say "GET UP YOU EMPLOYEE!" ?"

Now, while I cannot explain my love for the song "Ramble On" at 4:30 in the morning, I can explain why my alarm reads "Get up you EMPLOYEE!".

When I first started working with our company I asked my dad what he thought it would take for me to be successful at selling what we do. He direct and unusual answer caught me completely off-guard...

"Jason, if you want to be successful then don't act like an EMPLOYEE!"

What? I am an employee of the company but to be successful I need to avoid acting like one? Huh?

My dad did go on to say, " Jason, If you want to be successful then don't act like an EMPLOYEE...act like a BUSINESS OWNER!"

Acting like a business owner has ZERO to do with actually being a business owner. It is merely a decision to run our sales business and approach our territory as a business owner would. Would a business owner show up to the office after everyone else and spend 3 hours a day checking emails? No, they would be attending to current customers and building trust with prospective customers. Would a business owner drive 3 hours to deliver a 5 gallon bucket of paint to a client that only makes up minute percentage of our monthly volume or would they invest time in the client that is regularly placing large orders? They would do what yielded the highest ROI...and I am assuming that is not a 3 hour, small volume "customer service" trek!

While we discuss showing discretion in what we choose to spend our time on, we are not saying that you refuse to work on your quarterly projections because "a business owner doesn't have to do quarterly projections". Even business owners have the numerous house keeping items to take care of. The only difference is that a business owner addresses those items immediately because the longer they stew over it the more time they are spending "not making money"!

So, what does it take to become a "business owner"?

1. Become more introspective...

What could I be doing to become more successful? Where am I losing time in my day? How can I generate more high ROI customers? Which customers of mine am I investing a great deal of time in and gaining very little in return? These are questions we should be asking ourselves on a regular basis.

2. Don't wait for instructions...

There is always something for a business owner to do! Self-management is key to being successful in sales. A true sales professional does not need constant instruction because they know that there is always something that can be done to widen or deepen their business. Business owners are proactive...not reactive!

3. Keep learning...

Business owners treat their business a craft and a craft requires constant attention and regular improvement. Whether it be through books, CDs, podcasts, seminars, or webinars, we must make a commitment to keep learning and growing.

Join us for our August Webinar Series

In roughly 60 days the Rated R 4 Results Team will be launching a subscription-based website, called "Gladiator U", to aid in the success of sales and sales management professionals across the globe. To ensure that our product is world-class we are delivering 6 free webinars over the next 60 days. With the webinars playing a major role in our upcoming website, we wanted to deliver a variety of them for free to you, our prospects and sales experts, to obtain your feedback!

So...how can you help? Sign Up! They are absolutely 100% free, no tricks, nothing up our sleeves and no bait and switch! Can't make the times fit your schedule? No problem! We are going to be recording every webinar and will send you a link to download them and view them at your leisure! All we want is your feedback. What did you like, not like? What works for you and what doesn't work? Bottom line ... when we roll the "Gladiator U" site out in October, we want our webinars to be the best!

What does our August schedule look like?

The August webinar series will address the following subjects...


"From Order Taker to Gladiator" - How Top Sales People Win & Win Big!!

This webinar is designed to address the 4 critical building blocks for outstanding sales performance. In this webinar we will discuss what it is that top sales performers "are & do" that consistently lands them at the top of every sales report

August 11th, 2009, 2:00pm to 3:00pm CST


"Are You Social? - How to Tap Into the Social Media World and Implement it Into Your Business"

Are you retiring in the next 3 months? If not, then you cannot afford to sit out in the world of social media. In this webinar our attendees will learn how to create a presence through systems such as Facebook, LinkedIn, Twitter, and Blogging.

August 18th, 2009, 2:00pm to 3:00pm CST


"A" Players Only! - How Top Sales Managers Build "Hair on Fire" Sales Teams!

This webinar is designed to discuss the skills necessary to build a high performance sales team. Key topic areas for this program include how to get the right people on board from the very beginning, how to develop and manage the team and then how do you keep that talent on board for the long haul.

August 25th, 2009, 2:00pm to 3:00pm CST


Register Now at:
https://www2.gotomeeting.com/register/724940931


Can't make it to one of the webinars? Like we said ... don't worry! We will be recording each of the webinars in our August series and will be more than happy to send them to you. We look forward to having you join us for this great series. Please feel free to contact us if you have any questions at jim@r4ronline.com !

The Ultimate Customer Experience!

Planning a trip to Mexico anytime soon? If so, you have to consider staying at The Royal Playa del Carmen. I have had the pleasure of staying at a number of amazing hotels/resorts from Rio de Janeiro to London...and The Royal Playa del Carmen has claimed the top spot.

This is my opinion, however, the reason for my praise is far more interesting.

Although incredibly beautiful and in a prime location...the reason for my "Top Spot" is their phenomenal staff. From the second we arrived to the moment we left, the staff was ON! As we arrived, we were welcomed by Nancy at the front desk, "Hello. Welcome to The Royal Playa del Carmen. May I get your last name? Mr. Jacobus...and Soon-to-be-Mrs. Jacobus! Congratulations. We are privileged you have chosen us for such a special occasion. You are going to make a beautiful bride!"

While the welcome was very genuine and friendly, it was overshadowed by Nancy's memory. We saw her a number of times of the next few days and each time we saw her it was the same thing, "Hello Mr. Jacobus and Mrs. son-to-be-Jacobus. Are you enjoying yourselves so far? Are you excited for the big day? Please let me know if I can do anything."

How did she do it? How do you remember those kinds of details when you have around 1,000 visitors at a time?

At the beginning I thought it was just a neat quality that Nancy possessed but the more staff members we met, the more I realized that it was the culture of the resort. I HAVE NEVER been to any hotel/resort that was more focused on the "Customer Experience". If I ever had a question of the staff's commitment to their customers, it vanished when we met the entertainment team. This group of young employees was hired to interact with the visitors and encourage them to participate in the overall experience of The Royal. The led water aerobics, sand volleyball, bracelet making, bartending classes, bike rides, kayaking, and contests...but what they really did was make each visitor feel like they were the most important person at the resort.

It was an unbelievable experience to watch this team work. I just couldn't understand what The Royal could have done to create this type of culture...at least until I had a chance to chat with the bartender at our rehearsal dinner. I had a chance to speak with Moises, father of two, and overall amazing guy. I asked him what it was that made the service at The Royal so incredible. Moises simply said, "Mr. Jason, we have everything we could possibly imagine at our fingertips. We have a beautiful hotel, amazing pools, and a great location. We have it all...and when you combine that with a genuine interest in honoring our visitors, it is hard to mess up that bad."

I was completely caught off by his use of the word "honor". I mean, I have heard of respecting customers and being customer focused...but "honoring" the customer?

WOW!

After hearing Moises say that, we decided to request Moises for the reception the next night. Luckily enough, he was added to the reception team. After first giving me a hug, I had never seen an employee work as hard as he did for his 5 hours on duty. He was on point the entire time, as were the other two staff members. It was our special night and you could tell that they knew that. It was simply amazing.

As the night came to a close I saw Moises chatting with his two partners. A few minutes later the other two gentlemen approached me and gave me the most sincere thank you. They eventually went around and thanked each and every attendee. Come to find out, Moises had made nearly $700 in tips that night...and decided to share it with his partners. After I found this out I pulled Moises off to the side and asked him about his decision to share his earnings, "Well Mr. Jason...we are a family here. I love them. I have wife and two girls at home but I am not the only one. They have families too and tonight we will all have a gift to give our families."

I was entranced by how wise Moises was. He gave us a great gift that night but that it was tiny in comparison to the gift he will give his two young girls one day.

Overall, our wedding and vacation at The Royal Playa del Carmen was unbelievable. I will always remember the incredible staff there and will always be in debt to their commitment to make our wedding week perfect.

Click Here to Learn More About The Royal Playa del Carmen

Stop a thief!

I know most of the blogs on this site are mostly driven towards helping each of us become more successful in sales. However, it is also a duty of ours to protect the content that you and your company work so hard to deliver.

Most of you are probably wondering what I am talking about. Well, here is the story...

I recently received an email from a friend of mine saying that couple articles from this blog are being used under another authors name. Knowing that I was the one and only author of these thoughts, I decided to do some investigating of my own. The conclusion...I was one of MANY victims. James Rickman ( http://www.sustainablevirtualbiz.com/ ) has been stealing articles for quite some time now. As I Googled his name I came across a number of articles that he has "authored". I then copied and pasted a sentence/paragraph out of each article and Googled it...11 out of 13 articles came back as being the material of another author (many of them posted on websites such as FastCompany and BusinessWeek). One of the articles was actually stolen from a US News reporter!! I called each of these original authors and asked if they were, in fact, the original authors and each and every one of them confirmed (which would eventually negate James' claim that he was a ghost writer and that is why his articles are posted in a number of locations).

So what is going on? A couple of things...

1. To populate his library of articles and content on his website, James Rickman is stealing articles from a number of sources. He is changing the titles by one or two words and then copy and pasting the remainder of information.

How to protect yourself?

- Copy and paste a line or two from each of your articles and put them in Google Alerts. You will be notified if anyone uses that same line in their material.

2. James Rickman is selling stolen articles to his customers by means of his "ghost-writing" services. It is easy to have a fast tournaround when you copy and paste. One lady we spoke to said she hired James to write 6 articles. It didn't take her long to realize that each one had been stolen.

How to protect yourself?

- Make sure that you hire a credible ghost-writer. If you hire someone that is cheaper than everyone else and can return a 6, 2-page articles in less than a day, we must consider the old saying, "When things seem to good to be true, they normally are!"

Now for the funny part...

In an effort to contact James Rickman, I wrote him an email with all of the links to the stolen articles and links to the original authors. He then sent me an email from his "legal team" that said, and I quote, "was forwarded to legal for review and possible damages -- it is appreciated if you cease and deceased all further communications including online etc --- SVS LLC, Legal Team -- ."

You would think an individual that was part of his legal team would know that it is called "cease and desist".

p.s. Here is an article that takes a more entertaining approach to stopping plagiarism...sounds like fun to me!!!

http://www.conversationmarketing.com/2008/10/stop-plagiarism-in-3-easy-steps.htm

Are you on YouTube?

Do you know how to make a coke bomb?

No? Click Here To See It On YouTube

Have you ever seen the amazing story of "Team Hoyt"?

No? Click Here to See It On YouTube


Ok...So we all know that YouTube is a melting pot of inspiring, hilarious, and breathtaking videos from across the globe, but does it bring any value to us as sales professionals?

Of course it does!

What exactly is YouTube?

YouTube is a FREE video sharing website that allows individuals to upload and share videos to a mass audience!

So has the bell gone off yet?

YouTube can be one of the best platforms on the planet to market who you are and what you do!!!

Here are two different approaches to marketing on YouTube...

Click Here to Watch the "Will it Blend? iPhone" Video on YouTube

Story Behind "Will It Blend?" -

BlendTec developed a very powerful new blender and one day some of the developers were testing its durability by putting various items in the blender and turning them to dust. Luckily, one of the BlendTec leaders was walking by as they were determining "Will it blend?" and decided that they needed the rest of the world to see what he had just seen. Now there is a "Will It Blend?" series on YouTube where they test marbles, canned food, money clips, hockey pucks, and so on. Oh yea...the video you just watched has been viewed over 7 million times and sales at Blendtec have gone through the roof!


Now on to a video that takes a different approach to marketing...

Click Here to Watch a "Weird Kid Start a Huge Dance Party" on YouTube

Story Behind "Weird kid Starts Huge Dance Party"-

In watching this video you may have been asking yourself...how in the world is this a marketing piece? You may have also asked yourself, as thousands have, "who is that band in the background?" The answer is "Santigold"...and they are the ones that hired the kid to start a dance party and the camera man to catch it all on film. This video has been posted under a number of titles and on a number of similar sites. After this video was posted the group's sales went through the roof. The way they were able to accomplish this is by having group members initiate conversation in the comment board by asking, "Who is this band? they are awesome!!" It didn't take long for people to start learning more about "Santigold".


So what is the lesson here?

That YouTube can be a great resource to market what we do! We can make it a big production (Will it Blend?) or we can create something all natural and raw (Weird Kid Starts Huge Dance Party)!

How to Create Your Own YouTube "Commercial"

1. Identify your company's/product's/service's value proposition. What is it that you do better than any other company out there?

2. Get creative! How can we communicate our value to the audience? (demo, interview, answering popular questions, positive customer reviews, etc)

3. Be real and raw!!! Obviously BlendTec poured a few dollars into their "Will it Blend?" series, but that was more out of want than necessity. What if that same guy was just sitting in the middle of a mall as he turned these everyday items into "smoke"? It would still have a huge impact! People become hesitant when they know they are being marketed to so the more real and raw we can be, the better.

4. Push the video! You can send a mass email pushing the video or just add the link to your email signature. Just think how fast you could drive people to your video if you were on Twitter, Facebook, and LinkedIn...wink, wink!


Marketing your product or service through YouTube is not for everyone but if you can clearly communicate your product's value visually and you are not utilizing YouTube...you are cheating yourself!