ZVRK profile picture
ZVRK profile picture

ZVRK

Enterprise Account Executive

Politicker
Valued Contributor
Opinionated
+7

PO first, contract second?

Hey savages, this is a first for me, so thought to check if any of you has had a case like this.


I was just informed by a prospect they will be proceeding with us as the vendor who won the RFI, and that they already registered a PR (Procurement Request) in their system, based on our quotation, which will soon be followed up by a PO.


So far, we`ve only signed their GTC (General Terms and Conditions) which was part of the RFI documentation, and haven`t started the legal/procurement back and forth on the contract yet.


Have you ever had a case like this, where you first get the PO and only then start working on the contracts?

😜 contracts
9

10 comments

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sketchysales
Politicker
3
Sales Manager
In my previous job I had this sort of thing happen all the time, probably very little crossover in the order type or industry though that you may be talking about. Usually I found it useful.
ZVRK
Politicker
1
Enterprise Account Executive
that`s a relief, thanks! meeting their proc team in 2 minutes :)
Diablo
Politicker
2
Sr. AE
Congratulations, you already have this one. Patience now !
Justatitle
Big Shot
1
Account Executive
This is very common and also a good sign that they will treat this with urgency and legal shouldn’t be awful. PO also all but guarantees a signature.
Lambda
Tycoon
1
Sales Consultant
Sounds like it’s in the bag, just make sure the ppw is sent over correctly and swiftly
TennisandSales
Politicker
1
Head Of Sales
hmm I have not had that happen before. but in an RFP it makes more sense. they have decided to go with you so they feel comfortable getting. PO signed.

I would do it and just clarify that you also need the MSA/NDA/BAA or what ever else you need completed as well.
CuriousFox
WR Officer
1
🦊
Nice. Take the win!
Sunbunny31
Politicker
0
Sr Sales Executive 🐰
It sure beats chasing down a PO afterward!

Congratulations on the deal.
ZVRK
Politicker
0
Enterprise Account Executive
Update: i met the procurement team, and they have the budget approved for the setup fee (which is 20% of the ACV) and will issue a PO for that, but will still need to get the budget approved for the subscription fees and then issue a PO for that eventually. So now, they asking us to separate the setup fee from the subscription fee, and label the later as “optional”, so as kick things off without waiting for the approval for the subscription fee… what a mess 😅

This is a large customer, 60k+ employees and a sizable contract ( will make a third of my ‘23 annual quota), if it wasn’t so I would definitely push back on this. As it is,we’re meeting again tomorrow. Wish me luck 😀
TheDude
Politicker
0
Partnerships Lead
Not all companies operate the same way, some go to PO first, some straight to the contract. Going forward, asking about procurement policies and timelines builds trust with your buyer and provides you with the info you need.

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