| One of the most difficult parts of a
salesperson's job is dealing with purchasing departments. Whether you are a new
salesperson or a seasoned veteran, you likely will agree that dealing with a purchasing
department can create a tremendous amount of stress for a salesperson. Unless you are
truly unprepared, there's no reason for anyone to fear dealing with a purchasing
department.
A purchasing department is nothing more than a group of
individuals assembled for the sole purpose of trying to save money for their company. The
key for you as the salesperson to remember is that even though the purchasing department's
number one objective is to save money, this doesn't mean they are out to attack you on
price.
Purchasing departments view their role as the supply-chain
managers. It is their job to ensure the company does what it is supposed to do in an
efficient manner that requires as little capital as possible. What this means is very
simple: The purchasing department's job is much more than beating up salespeople. Granted,
many purchasing agents do enjoy the thrill of securing a lower price, but that's no
different than you. As a salesperson, you enjoy the thrill of securing a new sale. Accept
the fact that the purchasing agent is doing nothing more than what they are supposed to
do.
A few vital points to keep in mind when dealing with a
purchasing department:
* Low price may appear to be what they are after, but if
they buy something that's cheap but doesn't work, then it's suddenly anything but a
"cheap" item. If it doesn't work, they now have to replace it. In doing so, they
are stuck with a double-cost. Low price is really secondary to the performance of the item
they are buying.
* Rarely does the purchasing department have huge amounts
of power in a company. This means they're not at the top of the food-chain. As a result,
they can't afford to upset those above them. Although they may harass you to lower your
price, the last thing they want to do is be harassed by others in the company for not
buying what those people wanted them to buy in the first place. In other words, purchasing
agents will put up a good fight on the surface, but in the end, they can't afford to upset
anyone in the company – regardless of how much money they think they can save.
* Purchasing agents may say they must have a lower price,
but in reality their goal is really to save "x" amount of money – and it
doesn't necessarily have to come from you. Purchasing agents will always pick on the
salespeople who appear to be the weakest and most vulnerable. This only makes sense, as
they are simply trying to manage their time. Therefore, they will secure the savings they
need from whomever they believe will give it to them with the least amount of hassle.
Don't hesitate to call a purchasing agent's bluff.
Purchasing agents love to posture themselves with salespeople as if they control the
salesperson's career. All they are really doing is seeing how far they can push you. Until
you stand up to them and push back, they'll keep pushing you to get additional benefits
and lower prices. When a purchasing agent demands a lower price, the only thing they're
doing is going with the demand they know works the best since they know there is almost
always flexibility in pricing. It's the strength and confidence of you the salesperson
that is going to be the best indicator as to whether or not they'll be successful in
pushing you to lower your price.
Purchasing agents love to bluff people by saying they will
buy from one of your competitors if you don't lower your price. This actually happens far
less than salespeople realize. Upon hearing the threat of going to another supplier, most
salespeople will cower and give the purchasing agent what they are after. Too bad the only
thing the salesperson has done is give up profit. It's this type of a response that gives
salespeople a bad reputation. The entire time the purchasing manager is demanding you
lower the price or they will switch, they know full well how expensive switching to a new
supplier can be. |
