Professional buyers are just that – professional. They didn’t get that way by being a slouch. Today’s buyers are more educated and equipped to do battle with salespeople than ever before.
I hate to say it, but too many times the buyers are winning. And they are not just winning by a small amount, but winning big.
Below are seven tricks purchasing departments and professional buyers take advantage of salespeople to get a lower price.
1. They don’t ask for a lower price. They demand it.
On the one hand, there is nothing unusual about a customer asking for a better price. In today’s environment, asking for a discount is not much different than saying “hi” to someone.
What separates the professional buyer from others is the fact they don’t ask. They demand a lower price and they do it with confidence. They do it with confidence, because they know the typical salesperson will give them a lower price. Many salespeople are easily intimidated by a buyer’s price demand.
2. They threaten to go to a different supplier, regardless if they have done the homework to know if a switch is even a wise choice.
This tactic works amazingly well, yet what salespeople too many times don’t realize is the last thing the procurement agent wants to do is to set up with a new vendor. The paperwork alone can be a huge hassle, let alone having to explain to the people for whom they’re buying that they are switching suppliers. This can be extremely difficult.
Despite all those realities, the buyer knows that by merely dangling the threat of a switch will usually generate a favorable response from the salesperson.
3. They simply delay making a decision.
Nothing scares salespeople more than a customer who simply won’t make a decision. The sheer agony of having to wait results in salespeople offering up a sweeter deal to entice the customer to buy.
For the professional buyer, playing the delay game is like printing easy money because they win two ways. One way is, of course, by getting a lower cost of goods. The other is by freeing up cash flow and inventory by merely allowing existing inventories to decrease.
4. They use the argument of quality.
For the vast majority of professional buyers, what they’re buying is merely a SKU they know little about. For a few minutes, though, they can pretend to know everything and wave a quality report in front of the salesperson or even merely say they heard from someone that the quality of the product is inferior.
Just the mention of quality or anything else that challenges the integrity of the product can quickly generate a discount from the salesperson.
5. They argue for changes in the order, delivery, etc.
Why shouldn’t a buyer ask for something else? You certainly can’t fault them for trying? I refer to this as the squeeze play.
The customer is showing interest in what you’re selling and they get you to believe they’re going to buy. Then, just because they can, they start asking for additional items. The problem is that when the salesperson closes the order in haste, they often end up giving in to the demands without investigating if they are real needs.
For professional buyers who are establishing a new relationship with a vendor, this is a tactic used to see how much they can get a vendor to move for them. If the buyer sees the salesperson bend early in the relationship, then they know to continue using the tactic. They will escalate the requests a slight bit each time.
6. At the last minute, they throw out a lame objection.
Not only is this lame but it also is very profitable for the purchasing agent when done right. Typically, this strategy is used after everything has been settled and both the salesperson and the buyer know it’s a go.
Just as the buyer is ready to convey the quantity needed, provide the PO or give final approval, they ask for one more item. It’s at this point, the salesperson is toast. Why?
They’re toast because they have most likely already conveyed to their boss that they got the order, and the boss has in turn conveyed to their boss about the big sale. The salesperson knows they have to come through with the sale, because their own credibility is on the line. The same goes for the salesperson’s boss.
End result is simple – the salesperson and their boss give the customer what they want in order to save the sale.
This buyer strategy can be spotted early by the astute salesperson. Watch for questions from the buyer asking about what levels of authority you as the salesperson have. The sharp buyer will know then to leverage at the last moment what you can provide. The end result is a better deal for them and less profit for you.
7. They know you will cave under pressure
Unfortunately, the sales community does not have a good track record in dealing with tough buyers. The reason is simple. Too many times the buyer has years of experience on their side.
The buyers have watched many salespeople come and go, and as a result they’ve had plenty of time to learn. Conversely, the salesperson typically lacks the same depth of experience and in their eagerness to sell, they simply cave to the demands of the buyer.
What makes it worse is the sales manager caves too, all because they’re simply not willing to stand up to the buyer.
If you want to protect profit, you must be diligent in spotting the 7 ways professional buyers get better deals.
Mark Hunter, “The Sales Hunter,” is author of High-Profit Selling: Win the Sale Without Compromising on Price. He is a sales expert who speaks to thousands each year on how to increase their sales profitability. He was named one of the Top 50 Influencers in Sales by Top Sales World. To receive a free weekly sales tip and read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on Twitter, onFacebook and on Linkedin.(from: http://blogs.salesforce.com/company/2013/07/tricks-to-get-a-lower-price.html?app_data=%7B%22pi%22%3A%2244245_1373647055_874864878%22%2C%22pt%22%3A%22twitter%22%7D)
