Our basic premise is that when sales and procurement interact, it's a negotiation, not surrender. Its the job of sales, pricing and marketing to build confidence in price and defend it from further erosion. Reed Holden
Concord, Mass. (PRWEB) March 15, 2011
Dr. Reed Holden, CEO, author, and leading pricing thought leader for B2B companies, announced today that Holden Advisors is launching a suite of new professional services that will help tip the power in negotiations away from procurement and back to sales people and senior executives. Specifically, Holden Advisors is offering training, account planning, and consulting help for sales people and executives who are preparing for negotiations with procurement.
All industries, even high-value professional services, are under the strain from procurement negotiations. Holden warned that this trend has become mainstream because suppliers don’t use effective tactics against what he calls “the pricing buzz saw” of procurement.
“Procurement’s involvement in systems and services buying at all levels of value is the new normal coming out of the great recession,” states Holden. “Our basic premise is that when sales and procurement interact, it’s a negotiation, not surrender. Procurement’s top objective is to get a lower price. It’s the job of sales, pricing, and marketing to build confidence in price and defend it from further erosion. The tactics are quite simple and easy to learn, but it is essential that both sales and senior executives employ them to minimize the damage of price erosion during negotiations.”
Holden recommends companies consider these initial steps to ensure building confidence in pricing:
1) Prepare a negotiations playbook--be sure you do your homework and define the value message, anticipate which tactics procurement will use, and how are you going to respond. Don't get frustrated with delay--it's a tool procurement uses to cause desperation pricing. If they delay, you delay more.
2) If procurement throws a lot of detail into contracts, slow down and review each element. Decide what isn't good for the company and insist that it be removed or modified.
3) Support salespeople as they go through the process--pushing them will just hurt profits. Pursue a value agenda of patience rather than a "close the sale at any cost" agenda.
Additionally, Dr. Holden is releasing counter-tactic procurement podcasts to add to the popular “Pricing with Confidence” podcast series featured on the Holden Advisors website and iTunes, as well as the white paper Selling to Procurement: The New Normal, which outlines the imperative of preparation for tough negotiations with procurement. The podcasts and white paper feature concrete ways companies can minimize the effects of procurement tactics on the bottom line. These learning tools are available at http://www.holdenadvisors.com and http://www.pricingwithconfidencebook.com.
About Holden Advisors
Dr. Reed Holden is CEO and Founder of Holden Advisors http://www.holdenadvisors.com, a pricing consultancy, a training and thought leadership firm for those companies that want to improve price performance and profit while protecting the value they provide to their customers.
About Pricing with Confidence
The book, Pricing with Confidence: Ten Ways to Stop Leaving Money on the Table is published by Wiley & Sons, describes easy-to-understand steps companies can take to design and implement pricing approaches that are profitable, even in challenging times. For more information on what pricing strategies your company can adopt when markets change, and to learn more about the book, order a copy, or to view upcoming seminars see: http://www.pricingwithconfidencebook.com.
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