Buying Organisations: the External Buy for the Internal Sell1. SCA Conseils France| Your Partner for Export Tenders | © 2011 For Non-Commercial Use Only
Buying Organisations: the External Buy for the Internal Sell
A buyer as a company agent or representative has evolved considerably from being simple
point of contact in your client database. They are still the gatekeepers insofar as they are
your best – sometimes your only, point of entry into the company, increasingly they play
an important deciding role in supplier eligibility that it is important to understand if your
marketing efforts are to be targeted with minimum wastage.
As a species buyers are inundated with prospects and sales calls. As however tenders and
projects to which the buyer will be assigned tend to run on a cyclical basis, on nine
occasions out of ten your call will be mis-timed and likely the result being a fairly
unsatisfactory 'I'll call you back'. You may argue that you have broad visibility of the
launch of particular projects secured by your target clients, however this rarely has any
reflection of the timetable set internally.
Dare I say this is normal and in all likelihood applies to you and your competitors alike?
Perhaps, except for that one sales call that was perfectly timed to coincide with the launch
of a tender for which the proposed product fits.
So at best we're dealing with a lottery, which means to increase chances of success all
participants make it a repeat event, something which more likely than not will weary the
buyer and maybe have an adverse effect on your sales objectives.
Doubtless there are any number of sales strategies to circumvent this deadlock. In my
experience as a buyer however these strategies tend to be based on attrition and
persistence which, when we read further – we discover do not necessarily meet with the
buyer's set objectives.
The line is therefore that understanding how a buying department is organised per se, and
as a function of their corporate objectives can increase chances of success when applying
for supplier eligibility and participating in tenders. Needless to say I do not profess to
hold the Answer, simply another part of your sales mosaic that may help you outperform
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the competition.
AS with many corporate functions, procurement as a strategic function can be performed
in-house or it can be outsourced, with the latter tending to apply to project based
procurement owing to the growing number of buying agencies claiming to be specialists
in a given area of the market. Which arrangement applies to your target company or
project is not something to spend too much time on. What is important is to realise that an
internal buying department has largely similar responsibilities and deliverables to that of
an external agency; the only discernable difference being that if the procurement is done
in-house, the buyer may have a better understanding of the target company in the near-
term future, as well as a more informed view of past projects and experiences. This is of
more use to your sales effort in determining the longer term value of your prospect.
That a procurement function is held to account, be it external or internal, has a number of
repurcussions on buying behaviour. To name a few,
• Traditionally a buyer would procure essentially to a specification. I think we can
safely say that these days are now over, and that buyers are expected to explore
their options around the guidelines of a specification. In short their basic deliverable
remains the lowest cost, conforming proposition, though there is an explicit
expectation of advice and recommendation based on the buyer's contact and
experience with the industry.
• What often amazes my clients is that ultimately buyers have to follow a similar
sales process to their suppliers, in putting forward their recommendations. Today
you may be touching on an adversarial situation with your buyer, yet if successful
tomorrow they can be your best advocate. If a buyer is rigourous in examining
every last detail of your proposition then, it is because their name is at stake when
putting forward their recommendation to use you.
• It is common knowledge that procurement decisions are rarely made on the basis of
price alone. For all but the most standard of items, an evaluation takes into account
your past experience, your ability to deliver, your augmented product (after sales,
assistance, technical support etcetera). Arguably these elements plus a decent price
tag may still not be enough.
I draw particularly on the example of the construction industry when I say that by their
very nature, specifications are backward looking. Backward in the sense that in continental
Europe at least they may be written up to two years before the Release for Tender date,
and backward in the sense that they are often based on what was used on previous
projects. A buyer is thus blinkered as to the latest events and changes in industry that
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ironically could benefit the outcome. This also explains why on occasions your pitch may
fall on deaf ears.
Nonetheless the latest industry trends may be exactly what your customer needs. And this
is the essence of this article. You cannot get through to them on the phone for long enough
to explain the benefits of your product or service, and without this you can scarcely hope
to secure an audience to explain in any detail.
Good buyers will take the time to seek out new ideas and suppliers – usually between
projects or assignments. It is at these moments that a buyer is open, receptive and can take
the time to be educated as to your offering. Examples are numerous, however from
experience 'Meet the Buyer' events stand out as being amongst the most effective. Whilst
amongst the more crucial of steps in your sales campaign, it is important that it remains a
step rather than a one time opportunity to secure a deal. All you're looking to do is to
secure a place on the procurement radar, and thereafter to ensure you stay 'top of mind'
until such a time that your opportunity to bid comes up.
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