A Short Chat with a Procurement Manager About RFP´s...

What is in the head of a procurement manager? Is it true what we say in Solution Selling training about the buyer tactics? Do they really eat salesmen for breakfast, lunch and dinner?

At the conclusion of a recent meeting I had a chance to have some small talk with an ambitious procurement manager. She had just read my book “Solution Selling, Success or Failure” and referred to the chapter on how to win RFP´s. “Your input in your book is correct; of course we ask salesmen to do a proposal so we can compare prices. Most often we do not have the intention to buy anything, especially when we invite many vendors for a RFI. It is just a way for us to be proactive.”

She also told me that:
- They don’t like to buy a “complete solution”, because of unclear cost/value
- They like to split up the solution in to small pieces and compare prices
- They don’t like to buy from the market leader
- They want to go with the challenger to get extra value
- They don’t like risks and open issues in the proposals
- They like short and easy to read proposals in word format (no power points)

Finally she told me about her ambition to act as a market radar, to scan for new solutions and new vendors. After all, she wants to provide value to the organization that pays her salary!

How can we use this knowledge in our sales efforts? My conclusion is that we have to comply with their way of viewing the world, but also understanding that procurement is only the gatekeeper to the real power sponsors.

Written by and posted with the permission of:
Jens Edgren, Lindgren Partners Solution Selling
+ 46 8 651 25 00
www.lindgren-partners.se

Comments

[Ryck Marciniak]

Jens, your post is interesting, but I wouldn't take it as the gospel for procurement managers. Like anyone, they possess individual perspectives, biases and influences. The one mentioned in your post suggests, for example, that she doesn't want to buy from the market leader. Yet I've met many that have indicated that their preference is for the market leader, as they are the largest and most stable, have more money to invest in R&D and product development, etc. If you want to provide insights into the thinking of procurement personnel, then you need to conduct a study with a wide range of procurement staff and not rely on the anecdotal evidence of one.

[jens]

Hi, and thanks for the comment. A study would be good. The main reflection is that salesmen are tying to sell value to the purchasing department and that is like playing football with a hockey gear on. Does that mean that hockey is a bad sport? NO I love (to watch) hockey. Its just that its a different game. So my thinking behind the blog was to put light on the differences in thinking between ROI buyers and procurement.

But again, a serious research would be good!

best regards

jens