There are many things about modern buying that frustrate, even annoy, salespeople. Top of the list is buying rules and procedures. In this whitepaper we will look at rules and procedures from the buyer's perspective. In doing so, we will see that sellers should learn to play by the rules.

1. Retail Price: $9.99
Frustrated By The Formalities of Buyers? Why Sellers Must Start:
Playing By The Rules
There are many things about modern buying that frustrate, “…sellers don’t
even annoy, salespeople. But top of the list is buying rules
understand why
and procedures. But this frustration is futile, even counter-
productive. the buyer’s
rules are
needed…”
In this whitepaper we will look at rules and procedures from
the buyer’s perspective. In doing so, we will see why sellers
should stop resisting the inevitable and learn to play by the
rules.

2. Complaining About The Rules?
Sellers regularly complain of buying procedures that result in more
paperwork, uncertainty and cost. Indeed, buyers tell us that sellers
often vent their frustration at the requirements of buying
process/rules – something that can amount to a red card offence.
This happens not only because these sellers don't understand why
rules are necessary, but cannot empathise with what the buyer's must
do to get the purchase approved. But what is the point in sellers
getting frustrated or annoyed with buyers who are simply doing their
job?
Rules Are A Fact Of Life!
Sellers shouldn't feel so hard done by - they are not the only ones
affected by the rules and procedures that govern buying in large
organizations.
“Why get
annoyed with
A senior public sector buyer provides a window onto a day in the life
buyers who are
of a buyer bound by rules. Let's let her explain in her own words:
simply doing
‘The number of calls to my office has doubled or tripled in the past their job?”
12 months’. ‘We have in effect become a procurement helpline!’
‘People from right across the organisation ring up to ask ‘Can we do
this?’, or ‘How do we do that?’ with respect to a purchase they
must make.
‘They want to know what rules are involved, which ones can be
bent and which ones cannot. The only problem is that they often
don’t like what I have to say.’
‘Some ring up looking for forgiveness… they are half way through a
buying process but skipped a vital step. They are looking for
absolution – an ‘…it will be ok this time, just don’t do it again…’ The
result is one of disappointment. ‘
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3. ‘Is that a new regulation?’ the callers will ask. ‘No’ I answer ‘it is not
new… it is just that it has not been consistently applied in the past’.
'In recent years our budget increased annually and there was
considerable autonomy over spending. Now, the pendulum has
swung the other way, perhaps too far. From buying toilet paper to
computer systems you must follow the rules!‘
'All this can mean that procurement does not win you too many
friends, but that is the new realities of buying
(particularly in the public sector)' she concluded.
As this example shows; the rules impact on buyer and seller
alike.
The Rules Must Be Obeyed!
Just how important are the rules to buyers? Well, the words
spoken by a newly appointed University President to his
Head of Procurement provide a clue:
'...your number one job is to keep me out of the law
courts'.
The job of the procurement manager, although narrowly defined, was
clear. Given that lawyers accounted for up to 30% of the attendance
at a recent buyer symposium, the University President's concern for
avoiding litigation would appear to be well placed.
‘There is often a zero tolerance and zero risk approach to buying,
where adhering to the rules is more important than saving money'
exclaimed a central bank buyer who had just moved from the private
sector. For those more familiar with public buying this is
understandable.
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4. Here is a sample of the paperwork from a University procurement
team – in case the professional buyer was in any doubt the form spells
it out – it asks for the name and number of the 'accountable' person.
‘If applying the rules is your job then that is what you are going to do,
right?’ said the author of a forthcoming best practice buying
guidebook. ‘Put it this way’ he continued; ‘the main risk is not a sub-
optimal choice, or the wrong decision, it is failing to adhere to the
rules’.
The procurement consultant added: ‘If the wrong choice is made, but
the right rules are applied then all is forgiven... You can pay 5, 10, or
15 times more for it and even make the newspaper headlines, but as
long as you follow the rules then you are safe.‘
Rules Pose Challenges For Buyers Too!
‘The rules pose challenges for buyers too’ said another procurement
manager, adding that 'there is no question but they increase the cost
and complexity of buying. This is particularly the case in the public
arena, where the burden of regulation is causing high levels of
confusion, even frustration for many buyers'.
'In the public sector in particular, there are aspects of the job that
have become quite painful in recent years' said one long serving public “The main risk is
procurement manager. 'Before life was easy – you could pick who
ever you wanted. Now everything that you do is in fear of possible
not a sub-
future litigation' he added. optimal choice,
but not
A consultant with one of Europe’s largest procurement consulting
companies went even further to say; 'the rules have taken the fun out following the
of buying'. rules.”
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5. Buyers Must Impose The Rules Without Favour!
Salespeople may struggle to understand the bureaucratic zeal of the
modern buyer, but so too do buyer’s own internal colleagues. Indeed
as the speaker at a procurement conference said recently
'procurement is often seen (in large organizations) as the auger – as
being inflexible, bureaucratic and unforgiving in the application of the
rules'.
'It can be difficult to tell a manager that he or she must follow a set of
rules and procedures' explained another procurement manager.
'However as procurement manager, you have to stand your ground, in
the face of both internal and external pressures' he added.
'Even though managers may have their favourites in terms of suppliers
you have to ensure that the process remains fair and transparent. To
an incumbent supplier the thaw in relations in the run up to a bid can
come as a shock. But ending cosy relationships between managers
and suppliers is the job of procurement. In the case of long standing
supplier relationships you have to ensure that a certain
amount of professional distance is maintained' he
concluded.
Blaming The Buyer Is Unfair!
Most buyers feel that blaming procurement for having to
follow rules was 'unfair', even 'facile'. ‘With enormous
pressure on procurement to deliver savings and cut costs,
buying is clearly under the spotlight. But you cannot expect
procurement to deliver results if the rules laid down are
not going to be followed’ said one prominent buyer.
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6. Buying Risks Require Buying Rules!
Buying rules are the antidote to buyer risk. The regulations that
govern buying in the public sector and buying process in the private
sector are designed to manage the risky business of spending
somebody else's money.
Salespeople inevitably get frustrated by vacillating buyers and delayed
or stalled buying decisions. However, impatient to close the sale they
can easily fail to appreciate the importance of buyer risk. That is buyer
risk on many levels, including:
 The risk that the buying decision will not get sanctioned.
 The risk an internal stakeholder will with-hold support.
 The risk that the purchase will lose out to another project
competing for the same resources.
 The risk for the sponsor of making the wrong decision. “Rules are
 The risk of choosing the wrong vendor. designed to
'Most procurement managers are poor risk takers and there is a
manage the risk
reason for that' said one manager. 'That is because you may have of spending
bought millions of pounds with great savings, chosen hundreds of
money badly…”
good suppliers, but it is the bad deal that you are going to be
remembered for' he added.
More to the point 'buyers must act today knowing that their actions
could result in a FOI enquiry in 6 months time, an internal audit, or a
legal action' explained another procurement head. These are the
reasons why buyers so zealously follow the rules.
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7. The Science Behind This Paper
These insights and tools are based on:
1. Buyer Research – our ground-breaking research into how modern
buying decisions are made and the implications for sellers.
2. Best Practice Research – Over 1 million pages of best practice sales
case studies, books and research.
3. Common Practice Research – Our peer comparison benchmark of
1,000s of your competitors and peers.
The Sales Engine® and SellerNav are trademarks of The ASG Group.
The entire contents of this document are copyright of The ASG Group and cannot be
reproduced in any format without written permission.
Want help in tackling your sales challenges? Contact
enquiries@theASGgroup.com
www.theASGgroup.com
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