I
have done this many times myself - not to be malicious, but to buy time, carry
out due diligence or prepare a coordinated response with my client. Let me expand on that.
Reasons
why Procurement does not call you are:
REASON 1: They want to buy time.
Procurement
Managers might have up to 20 contracts to renew at any one time (each with
internal paper work attached to allow sign off) and the workload is too high to
deal with everything at ones, so they will call those whose contract they are
dealing with that day. By not returning sales calls they attempt to stay more
in control of what they do when. It is also possible that they are waiting for
the client to return their own call, because it is best practice to coordinate
responses out to sales people.
WHAT YOU CAN DO:
Check
with your client that they are not holding up any questions posed to them by
Procurement. Ask your client to check with Procurement where in the queue your
contract is. If you know your contract
is being reviewed - stop calling for status updates - and let the Procurement
Manager do his/her job.
REASON 2: They need to
understand the client's needs first, before being able to represent them in
talks with sales people.
Procurement,
unfortunately, often gets asked to be involved very late in the sales cycle. So
by the time the contract hits their desk time is short but the buyer needs to
carry out internal due diligence before commencing discussions with the sales
person. Procurement checks whether the client is authorized to buy the product,
has the budget to do so and that no alternative product is available. These are all internal discussions and there
is nothing to say to the sales person until this is complete. Rather than
explaining their internal process, the buyer prefers to let the sales person
wait.
WHAT YOU CAN DO:
Never
present a contract to your client without first having spoken to Procurement. If
during sales discussions the Procurement Team is not mentioned or involved - ask to be introduced.
REASON 3: They are not
interested in buying.
Unless
there is a client with a need (and budget), procurement will not commence
discussions with sales organisations. They cannot help with cold calls, will
not make recommendations or give out the names of people in IT (mainly because
they don't have enough technical knowledge). Even if a client wants to buy but
there is no proven budget, procurement will often not commence any discussions
as they know that it is unlikely that a purchase will be made.
WHAT YOU CAN DO:
Assuming
you have a client with a need and you are already speaking to them, make
enquiries about available budget. If they are replacing another supplier with
yourself ask when payments to the other supplier are stopping (if your client
is tied in there might be an overlap on costs and the budget is not really
available).
REASON 4: Negotiation Tactic
Some
buyers will take the passive aggressive approach and stop talking when they
don't get want they want. If you are in a legal dispute the buyer might be
instructed by their legal team to take this approach. In reality, legal
disputes are rare and it is more likely that the buyer wants to show their
muscle.
WHAT YOU CAN DO:
Ask for very clear instructions on what it is
that the buyer wants (e.g. drop your price is too vague) and make as assessment
on whether you feel the threat is real (check with your client what they
think). Unfortunately aggressive behaviour can be a sign of immaturity or
bravado. If your buyer is not very senior you may want to escalate to their
management team or your client. If they are the Chief Procurement Officer, find
someone in their team to try and build a more cooperative relationship with.
I
hope the above examples have been of use.
If you want to comment, please email me at wanda@amycus.com
To
your success