StringerBell

Account Executive

Acclaimed Answer

Can Procurement actually squash a deal if you don't play ball and discount?

I was thinking about this because I have a deal that, while nothing is guaranteed, should very well close in September. It was actually supposed to close in June and I was intro'd to procurement and we had negotiated a 10% discount for a Q2 signature. They flaked for a variety of raasons but since then we have done, a 2nd trial, they've hired someone senior for the specific role of managing this solution and are planning an executive presentation late August to put the final bow on the project.

It got me thinking, when I get re-intro'd to that procurement person in September and they want their same 10%, why should I give it to them? They fucked me in June. After this last presentation there's no way they would kill the project. We've been working on it since March, multiple trials, multiple demos, multiple stakeholders appeased - what power does this procurement guy really have? He's going to piss off the whole company that wants to get this started because I won't give him his 10%. I do find I am often soft and will be happy to just give the 10 to get the deal done but I am thinking what would really be the risk in standing first after all that's happened.

Any thoughts?

☁️ Software Tech

11

9 comments

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UserNotFound

Politicker

8

Account Executive

Will that discount affect your comp? If so, I'd tell him you've exhausted efforts to get that large of a discount but are happy to see if you can get X (x= whatever you want to offer, I'd go with 5-7%).

I'm a hard ass when it comes to 'the promo expired', even with a new buyer- but if I know that they're the kind of buyer that has to feel like they 'won' I'll give something else in it's place. Deferred first payment, additional training/PM resources, or even just a smaller discount.

DungeonsNDemos

Big Shot

2

Rolling 20's all day

if the deadline discount has passed and you still give it after, then was it really ever a deadline discount? I agree, offer less but still some.

UserNotFound

Politicker

1

Account Executive

Exactly. My opinion is that it shows they can’t trust your word. I legitimately never go back on an offer expiration unless it’s actually a manufacturer promo that they extended. If it’s something I have control over, it ends the date I said it would. However there’s always another ace up the sleeve!

Justatitle

Big Shot

3

Account Executive

Procurement can cause a deal to not go through and remember there’s usually a back up option and someone else they’re talking to. Might not be the case here but big picture how bad does the 10% discount affect your bottom line number. You can also bring up being burned in the past as well.

Cornholio

Opinionated

2

Account Executive

I think meet half way- wait until he brings it up- give it a day and then just tell him the 10% expired in Q2 but you fought to get him a 5%.

RedLightning

Politicker

1

Mid-Market AE

Their job is to negotiate and I'm pretty sure they get comped on the difference, so keep that in mind. They flaked on their end. So, I don't think you're obligated to keep that discount.

Do.it.for.the.checks

Politicker

1

Account Executive

The answer is it depends.

Check out 30 Minutes To Presidents Club. There's a good podcast on it. Episode like 5 or 6

Sniper

Valued Contributor

1

Enterprise Account Executive

Yep

AlexT

Politicker

0

Account Executive

Procurement real job is to make sure the company gets great value for what it is buying so make sure you show them that. But they also need a win. They are paid to get something out of the deal, even if it is little. They need to go back to their boss and tell them a story of how it was incredibly difficult but they got you to concede "this". Now "this" is up to you. Perhaps ask: what else outside of pricing could be of interest to you? And see if you can give him a win without touching the commish. They are so many variables you can touch without touching the money.

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