Seven Ways Technology Vendors Blow the Sales Pitch

Have you ever tried to negotiate a deal for software, computer equipment, or consulting services with a technology company? The task can be daunting. Unfortunately, the sales forces of most IT companies are armed to the hilt with techniques to get the best deal for them, and not necessarily the best deal for you. And even worse, most of us computer folk (like myself) have never been trained in the art of negotiation, so it can be difficult to spot a snake in the grass. Before you begin negotiating a technology deal, know what you're getting in to.

Solicit, Don't Be Solicited

I receive at least three calls each day from technology vendors interested in selling something: hardware equipment, software tools, consulting services, etc. Usually, these calls are "cold". My name somehow landed on a telemarketing list in the hands of some vendor who is calling me out of the clear blue sky hoping that what they sell somehow matches what I need. You can waste hours on the phone letting some non-technical, script-reading, telemarketer or sales representative chew your ear off about their latest and greatest gizmo. Very rarely do these types of calls ever translate into a real business opportunity.

Despite the effort IT vendors and buyers put into patching their seemingly irreconcilable differences, the relationship still doesn't always work out. Sometimes, it's the little things vendors do-the things they're least aware of, such as bickering with their own tech support people during pitches-that make IT leaders lose confidence. Here's a list of common mistakes vendors make when pitching to CIOs.

• They're arrogant.
• They arrive late.
• They're too aggressive.
• They don't follow up
• They turn the meeting into a domestic dispute.
• They make no attempt to tailor the pitch
• They waste your time

Follow these steps, and you will strike better deals and build confidence in your ability to negotiate. What I have left out in the steps above are standard questions that vendors love to ask. Let me leave you with these questions, their underlying motive, and what you should say. The trick is to always put the ball back in the vendor's court to better your position:

• Question: "What's your budget for this project?"

   

  Motive: Setting the price floor

  Answer: "That's confidential. Why do you need to know that?"

• Question: "What's most important to you? Price or service levels?"

   

  Motive : Prioritizing your trades

  Answer : "They're both important to me. I'm looking for the best package"

• Question: "How soon do you need to make a decision?"

   

  Motive: Setting the timeframe

  Answer : "I will make a decision when I can get the overall best deal"

• Question: "Can you make decision quickly. I've got to make my sales quota and our quarter is ending soon. I can't guarantee I give you the same discount"

   

  Motive : Apply pressure

  Answer : "I'm not going to rush my decision because of your company's business calendar. We may need to re-think things..."

There are others, but always maintain your control, patience and poise and always take the lead in the negotiating dance!