PurchTips edition #322<\/p>\n<\/div>
I\u2019ve heard many a CPO say: \u201cpurchasing people today need to have sales skills.\u201d It\u2019s true \u2013 purchasing professionals like you need to convince many different constituencies of many different things. Here are four sales tactics you can leverage in your purchasing work.<\/p>\n
\u201cHelp them understand how they benefit by working with you.\u201d This sales tactic applies to purchasing in the way that you deal with your internal customers. You need them to follow the purchasing processes you establish. You need them to use the suppliers with whom you have contracted. You need them to adhere to your purchasing policies. But what does it take to convince them to comply? The fact that it\u2019s \u201cgood for the organization\u201d isn\u2019t very motivational. To be persuasive, you have to answer the question \u201cwhat\u2019s in it for them?\u201d It may be the ability to buy more stuff with the same budget, or something else. But you need to make it clear how their department benefits by doing the things that you want them to do.<\/p>\n
\u201cClose the deal.\u201d Salespeople aim to convince buyers to stop negotiating, agree to the terms currently \u201con the table,\u201d and place orders in the shortest amount of time. You also want your suppliers\u2019 salespeople to agree to the terms you\u2019ve proposed in the shortest amount of time. Therefore, you need to learn how to negotiate in a way that convinces salespeople to let go of their ideas that they could get better terms for themselves, stop negotiating, and accept your order.<\/p>\n
\u201cHelp them feel comfortable with the numbers.\u201d The #1 thing that buyers want to negotiate is price. So, salespeople find themselves defending their prices often. Their goal is to convince their prospective customers that their \u201cnumbers\u201d are fair, using pure logic. In purchasing, you likely find yourself trying to justify to the finance department that your cost savings \u201cnumbers\u201d are valid. Use the same type of logic that salespeople use to illustrate why your numbers should be accepted.<\/p>\n
\u201cExplain how the value they get will exceed the money they pay.\u201d People and organizations buy things because they value the product or service they get more than the money they pay. Successful salespeople convince their customers of the value of what they sell so that their customers don\u2019t mind spending money for it. As a purchasing professional, you must convince your management that your work has more value than the money the organization pays for the purchasing department (compensation, office space, resources, etc.). You do this by showing how purchasing activities contribute to the financial health of the organization.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
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