Description

Ian Altman discusses common mistakes in procurement, emphasizing the importance of not commoditizing oneself. He advises vendors to focus on what's in the customer's best interest rather than succumbing to unrealistic demands for line item pricing and cost disclosure. Altman suggests engaging with line-of-business people to understand client needs and past experiences, which can help tailor services to achieve better outcomes. He recommends shifting the focus from price to results by discussing long-term success metrics with clients. Vendors should articulate their value proposition and be prepared to negotiate based on overall solutions rather than individual items.

Biggest Mistakes

• Allowing procurement to dictate pricing and require cost disclosure, leading to commoditization.
• Accepting unrealistic procurement demands without proposing a results-focused alternative.

Best Practices

• Engage line-of-business stakeholders early to ensure the solution improves outcomes.
• Ask and agree on measurable success metrics before selling or delivering.
• Offer bundled pricing tied to accountability to emphasize solution over line items.
• Present your success formula and collaboratively adapt it to the client's buying rules.