TOPLINE HOTLINE: How do you balance getting the best deal with choosing the right product?
Jul 11, 2024
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The podcast discusses balancing deals with product choices in business, highlighting savvy buying, commoditized vs. non-commoditized products, and negotiation leverage. It explores the trade-offs in price and value, strategic decision-making, effective spending in partnerships, and negotiation tactics for services and products. The hosts share stories and insights on discounts, buyer behavior, and tech challenges in the business ecosystem.
Negotiate for value, not just price, when purchasing products.
Differentiate procurement strategies for products vs. services to ensure wise spending.
Deep dives
Balancing Value and Price in Purchasing Decisions
When considering purchasing decisions, it's crucial to strike a balance between obtaining the best deal for the company and selecting the right product. It's not solely about revenue growth anymore, but about wise spending. CEOs and founders need to be savvy buyers and understand that a good deal doesn't always mean the lowest price but can involve additional value. Leveraging negotiations tactically at the end of a quarter or year can maximize leverage to secure advantageous terms.
Differentiating Between Product and Service Purchases
The purchasing approach varies between products and services. While product purchases involve tangible outcomes and known value ranges, services often require a leap of faith as the value is realized post-purchase. Pushing for steep discounts on services may lead to diminishing returns, akin to not bargaining with professionals like doctors or lawyers. Understanding this nuance between products and services is vital in procurement strategies.
Challenges and Trends in Technology Procurement
Technology procurement poses challenges with buyers often overwhelmed by the multitude of solutions available, leading to tech fatigue and high churn rates. Many buyers tend to prioritize the latest technology to address every issue without considering alternative solutions like status quo or outsourcing. The buying process reflects confirmation bias and exuberance initially, emphasizing the need for a more strategic and thoughtful approach to technology procurement.
Join hosts AJ Bruno and Asad Zaman on this episode of Topline Hotline as they tackle a pressing question from the go-to-market community: how to balance getting a great deal for your company while choosing the right product. They discuss the importance of being a savvy buyer, the dynamics of commoditized versus non-commoditized products, and the role of leverage in negotiations.
Enjoy the mini-episode? Read the recaps and join our Slack channel to engage with other listeners here.
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