Sales and Procurement: How to Sell to Procurement Managers

Sales and procurement have always been seen as two conflicting areas. Well, this is because sales are usually all about selling for the highest price. On the other hand, procurement is more about saving by getting the lowest price. Therefore, it is always assumed that these areas cannot combine. 

However, focusing only on this conflict reinforces the misconception that sales and procurement cannot collaborate effectively. In reality, the dynamics between these two functions create significant value and drive business success.

In this article, I will explain the relationship between sales and procurement. I will also provide practical tips on how to successfully sell to procurement managers, drawing from my own experience as a former procurement manager dealing with salespeople. 

After reading this article, you’ll learn how to engage effectively with procurement professionals like me, leading to improved interactions that will help us achieve our goals more successfully.

The Relationship Between Sales and Procurement

The relationship between sales and procurement is often seen as two areas that repel each other. However, these two need each other to meet the objectives and goals of a company. 

Before exploring how these two areas interact, I’ll start by breaking down their usual roles and responsibilities.

From a general perspective, sales are typically focused on selling goods or services and engaging with customers to receive payment. On the other hand, procurement is responsible for acquiring the necessary resources for a company to maintain its operations.

This highlights a clear difference between the two areas, but it also shows how they can work together. Both are involved in the process of fulfilling customer orders, with sales driving the sales of products and procurement ensuring those products are available.

This way, sales, and procurement should collaborate closely to optimize the company’s processes. Sales generate revenue by selling the company’s products, while procurement ensures those products are created and available for customers.

10 Things You Should Know to Sell to Procurement Managers

Having seen both sides of the negotiation table, I can confidently share 10 insights from my experience that can help sales professionals engage more effectively with procurement managers like myself.

1. Align with the procurement manager’s objectives

During my time as a procurement manager, I interacted with many salespeople. One common observation was that they were often eager to sell their products, even when those products didn’t align with my objectives and goals. 

As a result, many of these salespeople reached an impasse because I didn’t see the value their products could add to my objectives.

As a procurement manager, we always work with specific criteria to ensure our purchases align with our goals. This often makes us seem demanding. 

However, if you look closer, you’ll see that these demands are simply a reflection of what the company expects from us while still aiming to satisfy the end-users.

When a salesperson takes the time to understand what I aim to achieve, that’s where we can find common ground. This approach allows us both to work towards a solution that aligns with my objectives, ultimately benefiting both of us.

2. Know what makes a good deal for both of you

It’s important that the company you work for is happy with the deal, that the supplier or client is satisfied, and that you’re happy with it too. But remember, there’s no such thing as a perfect deal. Even if you think it’s a great deal, you can never be completely sure it’s the best one.

With this in mind, always strive to collaborate and ask the procurement manager how you can make the deal beneficial for both parties. Additionally, understanding how your objectives align with those of the procurement manager will help you achieve this.

3. Figure out who has the authority

When I was a procurement manager, I often found myself negotiating with people who didn’t have the authority to make decisions. Because I valued the relationship, I believed that having another meeting would eventually lead to a deal.

However, I later realized that if you discover you’re dealing with someone who can’t close the deal, it’s crucial to address it directly. This applies to both procurement and sales negotiations.

If the person you’re negotiating with doesn’t have the authority to finalize the deal, be upfront about it. Either have them involve a higher official in their organization, or bring your boss into the conversation. Don’t waste time negotiating with someone who can’t make the final decision.

4. Build a connection or relationship with the procurement manager

It’s not the company that decides to agree or disagree on a deal—people do. Even in Western Europe, where relationships might seem less emphasized, this remains true.

Always remember: it’s the people, not the company, who make the decisions. Many salespeople overlook the fact that to get things done, you need to adapt to what works—and what doesn’t—for the person across the table, in this case, the procurement manager. Build a connection!

When people feel trusted and comfortable, they tend to be more generous at the negotiating table. Listen more than you talk, and pay attention to the non-verbal cues of the procurement manager you’re engaging with to gain insights into what works and what doesn’t.

5. Know your product and Emphasize its Benefits

Procurement managers like me can easily tell when salespeople are bluffing about their products. It’s one of the negotiation tactics we commonly use, so we know if someone is trying to use it against us.

If you don’t fully understand what you’re selling, how can I be confident it will add value to our business and align with my objectives? Knowing your product shows us that you understand how it can benefit us and helps us assess how it might address existing challenges within our organization.

By thoroughly knowing your product, you can position it as an additional value rather than just an additional cost. As procurement managers, we carefully evaluate every purchase to determine whether it will truly benefit us.

In the field of sales and procurement, negotiation is common. Procurement managers regularly negotiate to secure the best deals, while salespeople do the same to sell their products.

That’s why it’s not just important to know your product—you also need to know how to highlight its benefits to your customers. In my years of experience as a procurement manager, I don’t just evaluate whether salespeople understand their product; I also consider whether they can effectively position it to emphasize its value and benefits to my organization.

As I mentioned earlier, bluffing won’t work against us. It’s better to do your homework by preparing and asking us questions about what we need. This approach not only helps you align with our objectives, but it can also reveal new ways your product can help us that we might not have initially considered.

6. Constantly naming faults

In my time as a procurement manager, one thing that always annoyed me—and often made me want to walk away from a deal—was when salespeople constantly pointed out faults.

In practice, those who frequently raised issues with the execution of deals became irritating. While their complaints might have been valid, I managed 70 to 80 suppliers daily and simply didn’t have the time to verify every claim they made. Salespeople who did this regularly became a real nuisance.

For you to deal effectively with procurement managers, focus on solutions rather than repeatedly highlighting faults. Given the high volume of suppliers procurement managers handle, respecting their time and prioritizing clear communication is key.

Instead of pointing out every minor issue, propose improvements that streamline the procurement process. This positions you as a problem-solver, which is far more likely to foster long-term relationships.

By offering value and demonstrating an understanding of the procurement manager’s workload, you avoid becoming a nuisance and become a trusted partner instead.

7. Escalating the negotiation

Another thing I find equally annoying, which ties into the previous point, is when salespeople escalate issues. If something went wrong during the execution or process, they’d call their boss, who would then contact my boss to discuss the negotiation’s progress or lack thereof.

This was frustrating because when I’m negotiating directly with you to close a deal, I don’t want either of our bosses involved. Salespeople who kept escalating issues this way were not only irritating, but it also undermined my confidence in the process.

When you’re pursuing your goals, it’s often more effective to address faults directly and immediately if the procurement manager or organization makes a mistake. Don’t wait—bring them up right away. This can give you an advantage, as the other party might feel compelled to compensate for their errors.

Additionally, by addressing issues directly rather than immediately escalating them to higher-ups, you demonstrate a level of professionalism and responsibility that procurement managers value. 

Maintaining direct and clear communication allows you to resolve problems more swiftly, keep control of the process, and foster a stronger rapport with the procurement manager.

8. Overconfidence

Being confident can lead to better deals and more attention, but it should align with your personality and your company’s approach. Additionally, overconfidence, on the other hand, can cloud your perception of what you’re offering versus what’s actually on the table.

Let me share an example from my time as a procurement manager. A salesperson approached me, offering their product with a 30% discount, claiming it was the best deal I’d find among all suppliers. What they didn’t realize was that our regular suppliers were offering the same discount, plus we had a strong relationship with them. 

Not only were our concerns addressed quickly, but their reliability was a key reason we stuck with them. The salesperson’s overconfidence, without understanding our existing relationships, ultimately undermined their pitch. 

So, my tip is to be confident, but don’t let it cloud your judgment. Stay aware of the full picture so you can assess the negotiation clearly and avoid overestimating your position. 

9. Handle all the perceived risks politely

In my years of experience negotiating with sales professionals, I always ask questions not just to assess the relevance of a product, but also to signal that I see potential areas where risks could arise.

It’s reassuring when you can address these concerns and make us feel confident that we’re getting a good deal. Of course, this requires doing your homework—carefully examining the product you’re selling to identify any potential risks.

It’s also comforting for procurement managers to see that you’re addressing these risks positively and proactively, rather than dismissing or downplaying them. If you become dismissive or don’t thoroughly address our concerns, procurement managers might think twice, or even reject the deal, because you failed to address all the issues.

Always remember: procurement managers like me value order and assurance. We want to be confident that what we’re buying is worth it. So, if you fail to address our concerns, there’s a good chance we won’t reach an agreement, and the deal will be off.

10. Follow up after engaging with them

Lastly, when engaging with procurement managers, it’s important to follow up after the deal. Following up creates a sense of urgency and demonstrates that you’re eager to move forward. However, ensure that you’re transparent and provide any additional information needed to finalize the deal.

Following up also shows that you are committed to the deal, which motivates procurement managers to close it with you. It indicates that you value their objectives and are focused on building a strong relationship over time.

However, following up doesn’t mean you should be overly persistent. From my experience, constant calls on WhatsApp, messages on Bing, and emails multiple times a day can be off-putting. Instead, establish a clear communication plan for the week, such as agreeing to use WhatsApp for updates, to avoid constant interruptions.

To respect the time of the procurement manager you’re working with, it’s important as a salesperson to set specific times for check-ins or updates. This approach helps maintain a balance, ensuring that communication remains effective without overwhelming the other party. After all, nobody wants to be constantly bombarded with messages, right?

Conclusion

Sales and procurement have often been seen as two areas that struggle to collaborate. However, while they follow different processes, both are essential for fulfilling customer orders.

Collaboration between these two areas is not only possible but beneficial. It can help companies increase revenue and reduce costs, as both departments are focused on these goals. 

The ten tips I’ve provided are drawn from my own experiences and are meant to illustrate effective strategies for selling to procurement managers. Furthermore, these tips will empower you to engage more effectively with procurement professionals and create strong, mutually beneficial relationships that drive successful deals.

To learn more about effectively engaging with procurement professionals, check out our Sales Training: Understanding Procurement Course. This course is specifically designed for salespeople to deepen their understanding of procurement. By gaining insights into the procurement process, salespeople can position themselves more effectively when interacting with procurement professionals, allowing them to appreciate their perspective and foster strong, collaborative relationships.