IT and Software suppliers love lazy buyers
When buying a car, you wouldn’t simply walk into a showroom and pay the price on the windscreen of the car without negotiating – so why would you do this when buying software or IT services? Unfortunately, far too many times I hear of businesses doing exactly that.
Though, buying software or IT services can be very similar to buying a car….
The software or IT vendors often expect prices to be negotiated so will start with higher listed prices i.e. their windscreen prices. Software or IT vendors will often try to include in your pricing extra services and products that you may or not need. Also, as per the car salesperson in the showroom, the people selling you software and IT services are professional salespeople who sell their services and software day in and day out.
They expect you to be diligent, to negotiate, to ask probing questions, to get alternative quotes – but they love it when you don’t and are a lazy buyer who pays the windscreen price….
I have helped many clients over the years not to be lazy buyers and to get good competitive rates for the services or software that they are purchasing.
My top 5 tips on how not to be a lazy buyer would be:
- Break your quotes down – It’s important to understand exactly what your software or IT supplier quote is comprised of to give you clarity in negotiation.
- Review the components or services you are buying – Now your quote is broken down into the component parts, make sure that the services you are buying are right for your needs – or are you paying for optional extras you don’t need? A common example would be paying for 24/7 premium support when your business is a 9-5 operation – do you need this level of cover?
- Negotiate and get alternative quotes – Don’t be frightened to negotiate on the component parts and overall quote, this is the only way you will drive the price down. As the buyer you are in the driving seat, so get alternative quotes to ensure you are getting value.
- Check for hidden costs – Ensure that there are no additional or hidden costs that are not included in your quote. An example here would be when purchasing a software package, are there any additional 3rd party licenses required that are not in your quote?
- Renegotiate on renewal – If you are already in a contract, ensure you review when your contract expires and take this opportunity to renegotiate and drive down your costs.
For more information on our procurement assistance services and how we help our clients not to be lazy buyers please contact Sean Devlin on 01905 794 504 or email sean.devlin@ballardsllp.com
