IT negotiations aren’t all that much different from any other type of business bargaining, observes Dmitry Bagrov, managing director of software development firm DataArt UK. “Don’t tell a customer you can meet their expectations when you cannot,”
The reverse is also true for vendors, he notes. “It’s unfair to waste a salesperson’s time if you’re not ready to purchase,” Plato states. For example: not having the funds necessary to acquire and deploy a technology and expecting the vendor to somehow provide a solution. “Vendors and prospects do this all the time, and it never works,” Plato notes. Intentionally withholding critical information is also a terrible tactic. “Nobody wants to work with a vendor who plays games, either,” Plato adds. CIOs pitting vendors against each other, playing tricks, lying, bluffing, threats, phony RFPs, and other underhanded ploys are more likely to backfire than succeed. “Nobody wants to help a leader who plays games,” he says.
Because of this, Plato recommends being open, transparent, and honest while negotiating a deal. While a little white lie or two isn’t necessarily harmful, bald-face lying is almost always destructive. “Antagonistic vendor relations never work and always burn bridges,” says Andrew Plato, CEO of IT security services provider Zenaciti. “You have power,” he states.ĬIOs bargain hard, but fairly. Leading a sales representative to believe that CIOs have a choice of vendors plays into this fundamental fear. “The vendor doesn’t know that,” says Austin Dowse, CEO of Aimvein, an e-commerce shop for medical equipment and devices.ĭowse notes that a vendor’s greatest fear is losing sales. “When salespeople hear about account growth and multi-year commitments, they’re more willing to go to bat and seek preferred pricing for you,” he notes.ĬIOs must always negotiate as if they have a choice of vendors to pick from - even if they have no other options because the vendor is the only business offering what their organisation really needs. Looking to the future also shows the vendor that interests are aligned with theirs, and CIOs are negotiating in good faith, Katzenberg explains. “Make it in their interest to provide discounts and other accommodations now to secure their potential upside in the future.” “Salespeople’s mouths water at the perception of a huge opportunity that can pay growing commission checks for years,” says Howard Katzenberg, CEO of spend management service provider Glean. When contacting a vendor for the first time, CIOs must mention how they're looking for a partner open to establishing a major, prosperous relationship in the years ahead.