If you’re familiar with the book, The Art of War, by Sun Tzu, you know how important it is to know your enemy, its background, strategy, ambitions, needs, weaknesses, and strengths. Although the buyer isn’t an enemy, (he’s ultimately an opponent who often times becomes almost a friend) you’ll need the same approach or principle, to get to know the person behind the job title of purchaser or buyer.
This will give you a clear advantage. It won’t solve all of your problems or challenges as they’re part of the buy/sell world, but it will allow you to be ready, prepared. To anticipate, to meet his expectations, to close deals.
Don’t ever neglect this step of knowing your counterpart as well as you can. Remember what I’ve said numerous times: it’s not (only) about who you are and what you aim for. A big part of the equation concerns who he is, what drives him and what he wants. If you don’t know who he really is, how can you know what he wants?
Below you will find a few critical aspects about purchasers that you should study or think about when you’re preparing a regular meeting, a negotiation, a proposal or working on your leads/prospects.
Who is the buyer?
A well-trained professional with a broad business understanding is a critical part of the success of his company. Someone with targets – not only to reduce or contain costs but also quality, supply, and so on. Someone who’s there in his function to challenge you as he aims for the best product/service and the best conditions. Note that I said, conditions, I didn’t say price. Regardless of how good your offer is, he will very likely object or challenge you for a better deal. So keep some concessions in your pocket. He will test boundaries, as you should do as well.
Are there different buyers types?
As you have different styles of salespeople, you’ll also find different styles of purchasers.
How do they “play” with their suppliers?
They make all kinds of analyses from the market, supplier landscape and they mix it with their market position and vision.
Pricing in the eyes of the buyer:
Traditionally purchasers have two different price approaches, depending on their business and your products: Value creation or cost plus
Things to have in mind embracing a sales career- Who’s the buyer:
- Has targets and KPI’s as you do, his role is to secure supply at the most suitable conditions.
- Different types of buyers: emotional, accountant, bossy, technical.
- Suppliers “homework”: Number of suppliers, volume division, force competition among suppliers, Porter Five Competitive Forces, Kralijc matrix.
- Pricing on buyer view: value creation or cost plus
- Typical buying objections: not the right time, or price is too high. Need to discuss with production, we have enough suppliers, need more background of your offer in terms of costs.
This is an excerpt of my book “sales is my passion”, available here: http://amzn.to/2DY7nVy