Understanding the Professional Buyer

by Cheverton, Peter

• ISBN13: 9780749461232
• ISBN10: 0749461233
• Format: Paperback
• Copyright: 2010-11-28
• Publisher: Kogan Page Ltd

Summary

understanding the professional buyeris a practical guide for sales people, giving them insight into the behaviour and strategies of buyers, so that they are able to deal with them more successfully and regain power in the buyer-seller relationship. in recent years the balance of power between buyer and seller has swung dramatically in favour of the buyer. sellers are now faced with more professional, more knowledgeable and more powerful buyers - and the sales techniques used in previous years are no longer working. this book shows how to understand this new breed of buyer, in order to interact with them on a more level playing field. contents include developments in the industry; purchasing organizations; types of buyers; purchasing analysis; and crucially, buyer-seller relations.

Author Biography

Peter Cheverton is a professional trainer and consultant, and Director of INSIGHT Marketing and People Ltd.  Jan Paul van der Velde has been a purchasing professional for over 20 years and is currently vice president of purchasing with the Flint Group.

Table of Contents

Preface	p. ix
About the authors	p. xv
Acknowledgements	p. xvii
Terminology	p. 1
The seller's response...	p. 2
Purchasing developments: what has changed	p. 3
The seller's response...	p. 6
The importance of purchasing for a company	p. 9
The economic logic: purchasing's effect on the bottom line	p. 10
Purchasing importance: the DuPont RoI model	p. 13
The rise and fall of purchasing: what next?	p. 16
The seller's response...	p. 20
Purchasing processes	p. 22
The basic purchasing process	p. 23
The detailed purchasing process	p. 31
The value chain model	p. 33
The seller's response...	p. 35
Purchasing strategy	p. 38
The seller's response...	p. 40
Purchasing organizations	p. 45
Purchasing organizational development	p. 46
Price, costs or value focus	p. 56
Purchasing organizational set-up and ability to deliver	p. 60
The seller's response...	p. 69
Buyers: types, motivations and rewards	p. 71
Buyer profiles	p. 71
Motivations and rewards for buyers	p. 76
The seller's response...	p. 78
Purchasing analysis	p. 80
Pareto analysis/ABC analysis	p. 81
Kraljic analysis	p. 85
The Dutch windmill	p. 94
Supplier portfolio management	p. 99
Porter's analysis	p. 103
Supplier selection criteria	p. 105
The seller's response...	p. 117
The negotiation game	p. 119
The negotiation process	p. 123
The negotiation power balance	p. 131
Negotiation tactics and buyers' tricks	p. 132
Buyers and negotiation tricks in pricing discussions	p. 139
The seller's response...	p. 142
Price management: managing the buyer	p. 144
The previous pricing relationship	p. 145
Timing of pricing discussions	p. 148
Pricing communication	p. 149
Pricing process and follow-up	p. 150
The seller's response...	p. 151
The purchasing agenda	p. 154
Supply chain-related purchasing activities	p. 155
HR purchasing activities	p. 159
Finance/legal-related purchasing activities	p. 160
R&D/development-related purchasing activities	p. 166
Sales/consumer/customer-related purchasing activities	p. 167
Purchasing tools-related activities	p. 170
The seller's response...	p. 176
Buying and selling relationships	p. 177
The seller's response...	p. 181
Summary and conclusions	p. 184
The ten-point checklist	p. 184
Getting further help	p. 188
Reading list	p. 188
References	p. 188
Training	p. 189
Speak to your own buyers	p. 189
Index	p. 190
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