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Aug 8
Buying Software - Part 2

Continued from Buying Software- Part 1.

Here is a quote from the beginning of an article about how to control the the software buying process.  "Software and IT in general are like the wild west. It's every buyer for himself as the technology and pricing models constantly change."  That is so true.  That is why reading that article is a must for anyone involved in the process.  Buyers have to know what they are up against in the industry in order to get a fair deal.

Here are some quick tips to set Buyers on the right path:

1. Get answers in writing preferably from the technical people on the vendor side.  Software salespeople are notorious from promising that software performs in a certain way or can handle a specific function when the truth is they have no idea if it can or flat out know that it can't.  Their goal is to sell an account and move on to the next one.  Software companies have completely different sales and service operations (and usually a third level in between devoted to implementation).  The salespeople's only goal is to SELL because they don't have to establish an ongoing relationship with the client.

2. Get all costs itemized in a written quote.  Beware of the "we'll throw this in" package deal.  No salesperson is "throwing anything in because they like you."  They are only adding things in if they think they are in danger of not closing the sale.  On the related note, don't ever assume anything is included.  They have all kinds of ways to inflate your final cost.  Make sure training is on the quote and the paperwork specifies where it will take place and how long it will last.  "Free" training will not be so free if you are located in California and you learn that the training classes take place in New York only.

3. Use time pressure to your own advantage.  Software salespeople are most forceful at quarter closing time and the fiscal year end.  They will do anything to book a sale before the final date.  That usually means trying to pressure Buyers into making a decision and warning that the price will increases dramatically the first day of the new period.

Buyers panic and close deals.  Yes, this is the time to close the deal, but not on the salesperson's terms.  This is the time to tell the salesperson that the deal will not be closed without an additional 15 % off the price.  Buyers should state firmly and meaningfully that if those terms can't be met, they will not be paying any higher price when the new period begins, that in fact they will seek out a new vendor if they have to still be looking in the new period.

 


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