Selling software is hard work. It is a complex task and the product’s price
is usually large. Also, it is hard to find new customers, so you have to make
the most of existing ones.
Under such circumstances, you would expect vendors to do their utmost to
maximise the value of a sale and to keep their customers happy. But often that
doesn’t happen.
I have seen both sides of the problem, as a consultant to software vendors
and as a consultant to companies that need to buy software. Here’s an example of
a typical recent scenario.
I want to spend money on IT – but the vendor will not co-operate. I would
like a reporting package to bolt onto an accounting system.
Ideally, I would like to spend half an hour discussing what I want to do and
for the vendor to say: “This is the option you need. Give us 24 hours and we
will give you a quote.”
But I actually get a vague suggestion that one of three options might do the
job, and that I should go away and think about my requirements. If they had
probed at all, the vendor would have found out that I have a £15m revenue stream
– so money will not be a major issue.
My client has been battling this problem for months. He wants help, and is
willing to pay for it. In fact, he looks much more motivated to buy than the
seller is to sell.
With better information I think my client could make an extra million a year
on top of his £15m revenue stream. Who cares what it costs? Just give me the
technology.
So we design sample reports and explain them to the vendor. Then the vendor
sells us a little reporting tool for a modest amount of money.
We have lost out because we could have solved the problem much sooner with a
half-hour discussion at the original meeting.
The vendor has lost out because, had it demonstrated a clear understanding of
the problem, we would happily have paid a lot more money to get it solved.
So, what should you expect from your supplier? Marketing materials are often
liberally sprinkled with words such as service and solution. Make sure suppliers
know what such terms mean for your own sales and pricing strategies.
When it comes to the sales process, make sure your supplier takes more
responsibility. They need to tell you, with confidence, exactly what must be
done to solve their problem.
On pricing, forget list prices and daily rates for consultancy. Suppliers
must describe the value of their technology.
And make sure they recognise that they are being handed a golden opportunity
to do something that will radically help your business. When you seize that
opportunity, price becomes irrelevant and everybody wins.
Alastair Dryburgh is chief executive of
Akenhurst
Consultants
Do you agree?
Have your say on this article