For many years, we at Worldleaders focused our sales training on first selling to the business-level decision-maker for improved B2B technology sales results. That is the essence of Smart Selling – business-to-business conversations with business-level decision-makers.
How Procurement Has Changed
However, procurement organizations have dramatically changed within the last five years. They are becoming more sophisticated and their influence within their organizations is increasing. In keeping pace with the changes in buying behavior, we want to better enable today’s sales representatives to improve their ability to work effectively with procurement professionals in order to provide “supplier led competitive advantage” and improvements in “TCO” … not profitability compression.
Selling to Procurement
After extensive research on selling to procurement, we documented the changes within professional procurement organizations and created a methodology to add to our sales training courses. Our new class, Selling to Procurement (offered quarterly), teaches salespeople these five major selling strategies as it relates to procurement.
Understand the Procurement Organization
Sales teams first need to understand how procurement organizations have matured to know how to address them effectively. The best sales rep knows who he or she is selling to and how that person is rewarded in their company.
Create Decision-Making Criteria (Besides Price)
Procurement needs to evaluate a vendor on value, risk, and price – as opposed to just price. The salesperson must work with procurement to achieve the right criteria. They must first look at business value and risk, and only then the fair market price for that paradigm.
Challenge the Requirements
As a primary part of selling to procurement, a sales rep must mentor the procurement professional and help them respecify the products or service being required for total cost of ownership (TCO). The vendor provides guidance to the buyer to help them buy Smarter.
Sales reps must switch their selling process from bidding in a race to the bottom to consultative selling. Instead of responding to bids, they must position their organization as a partner-level vendor that can demonstrate relative value.
Lead with Competitive Advantage
The sales rep must recognize that the vendor has more expertise in the proposed product or solution than the buyer. Supplier led competitive advantage enables improved sales or market penetration, first-time quality, compliance, and profitability, as well as reduced time to market, non-value waste, and total costs.
Register Today for Sales Training
If you’ve previously experienced the Smart Sales Method during our sales training courses, you’ll want to apply these principals to reach top-level procurement professionals, specifically the chief procurement officer or the vice president of the supply chain. High-level procurement individuals recognize the relative value formula, RV=BR+RM@FMP.
Posted on: October 2, 2017