Production Machining - Your access to the precision machining industrial buyer.
Issue link: https://pm.epubxp.com/i/105154
ABOUT YOUR BUSINESS 10 Ways to Get the Contract By John R. Wirtz W henever a client loses a major project to a competitor, the natural question is "why?" What did they do that you didn't? What could you have done diferently or better? Trough the years, I have asked these questions of buyers, engineers and senior managers many times. It is interesting how similar the answers are no matter the industry in which the company was doing business. Whether or not it is a small manufacturer of industrial pumps or a major Tier One Supplier, the same themes keep coming through. Here are the top ten points that customers consistently agree upon when discussing what factors most often turn the tide on the sourcing of major, multi-million dollar contracts. Interestingly, none of them are price. 1. Do less talking and more listening. Customers are interested in suppliers who want to talk about their company and their issues and have specifc ideas for dealing with them. Teir advice: Do your homework upfront, underWhat factors most stand the customer's organioften turn the tide zation before you get there, on the sourcing of ask good questions and really listen to the answers before major, multi-million you start selling them on a dollar contracts?" solution. 2. Use the tech review as a weapon of mass instruction. Way too many suppliers view the tech review as just another step in the sourcing process. Te smart ones, however, see it as an opportunity to diferentiate themselves from competitors, showcase their technical expertise and experience and to begin "teaching the new customer how to treat them." Te tech review is a great opportunity to teach the customer what makes you diferent and better than the other frms they are considering. Don't send the second string. 3. Don't assume anything. Even if you've got solid relationships or have done good work for the customer in the past, never assume you have the business in your back pocket. Buyers say being presumptuous can really irritate the selection team and turn a positive into a negative very quickly. 4. Tere's no such thing as a courtesy meeting. Never go into a meeting thinking it is only a "courtesy" meeting that you have to get out of the way rather than an important encounter with someone whose respect and trust you need to earn in order to get the business. In the complex 22 PRODUCTION MACHINING :: FEBRUARY 2013 5. 6. 7. 8. 9. sales space, there are not only multiple decision markers you need to address, but there are also a wide circle of infuencers who may not be able give you the business, but they can certainly keep you from getting it. Act like you truly want the business. Although sometimes it may not seem like it, customers generally appreciate it when you put extra efort into the proposal process. Te best business development teams treat the customer like they are already a client and don't hesitate to invest heavily in understanding the customer's business. Add value at every step of the process. Don't just "promise" to add value. Do it—in every meeting. Some suppliers go so far as to develop an entire presentation on "the voice of the customer" to demonstrate their deep understanding of the customer's customer. Others ofer to arrange a meeting with another customer of theirs who you have worked with on similar projects. Show your bench strength. Having the owner spearheading the pitch is great. It demonstrates to the customer that the project is important to the supplier, and it will have the support of everyone in the organization, starting with the CEO or owner. Customers also point out, however, that it is really important to showcase the rest of the team as well. Most customers are savvy enough to know that although the owner or CEO may be involved in the project, the majority of the work will be done by the rest of the team. It rarely comes down to only price. Yes, price is important. But price is rarely the deciding factor in the sourcing of a major program that is mission critical and requires signifcant value-add by the supplier. Te reason is that if you've made the short list, your price was at least in the ballpark or they wouldn't still be talking to you. Your price is your price. Make the most of your oral presentations. An oral presentation is your chance to shine. Use it to make a diference to diferentiate you, to justify your pricing, to showcase your expertise and experience, and more. Start out by asking the customer which parts of the proposal they would really like to spend time on and zero right in on those sections. Make your time together a discussion rather than a presentation. In short, don't lecture the customer—engage them.