Peter Cohan’s Post

Let's talk about references...It should never be "call me maybe" ☎   It is amazing how lazy and trusting we can be.    When purchasing SaaS, or a service, taking reference calls is critical for “real” feedback, but I constantly hear procurement and the business say, “I’m too busy for that many.”    My response: 🤨😧😬😓    Really?!?! If you were spending your own money, would you be too “busy” to talk to more people?    Any potential partner can certainly provide references (and if they can’t, that’s a huge red flag). But buyers beware: they can be fully staged or heavily coached, and it is not actually as rosy as it may seem.     When making a significant purchase, here are the keys to successfully vetting your potential partner via references:    🔄 First and foremost, use your network...back channel.  🗣 Ask for more than you can talk to: 5, 7, or even 10. You may not be able to talk to them all, but it’s a test to see if they can be provided.  🗣 Ask the potential supplier for places they have failed, been replaced, and why. Ask if you can speak to that customer for lessons learned (this will be a long shot).  ✅ Make sure ALL of your key team members and executives are on the call. Too many times I see lower-level people only who don’t ask the right questions.  ✅ Make sure the right people are on from the reference side; it needs to be more than just the system administrator.    Lastly, make sure you are asking the right questions. Oftentimes questions are too qualitative:    ❓ What were your main ROI drivers for the project and did you achieve them?  ❓ What outcomes and metrics are your most proud of and most recognized internally from the project?  ❓ What lessons did you learn and what issues did you have to overcome?  ❓How involved were your executives in the project?  ❓ What were the biggest gotchas from the presales cycle to the actual delivery of the product and/or service?  ❓ What would you have done differently?  ❓ If you were in our position, would you still pick the same partner again?    Procurement, it is your job to ensure that your internal customers (which is sometimes yourself when buying procurement tech) do not cut corners and never let anyone be “too busy” for references. 

Reference calls are a best practice and time well spent. Build it into the project plan up front so the business knows it’s coming and learns to expect this part of the process.

great advise on seeking and giving references.

Value added will be the common denominator for success selling software in 2024!

I just reached out to a client for which I am on retainer and told them they should reconsider our relationship. I told them I am not sure I provide enough value for the amount I charge them. I didn't do it so that I would have material for a post. I did it because it is the right thing to do. I am happy to collect from my clients when work is done. Imagine if your software vendors did this. Where they felt that their value to your organization was not high enough and they sent you a reduced invoice. I am not firing this client. It is one of the best relationships I have developed over years. It would be easy to keep charging them. Integrity dictates otherwise however. Your core values stay with you, that is the definition. If you are in sales and want to be the trusted advisor you claim to be, you have to walk the talk. Oh. I might have an opening if you are looking for a spot. :) #trustedadvisor #salescoaching #sales

Don't be a vendor. Plenty of sellers out there are really in Account Management. Call it farming, customer success, relationship manager, etc. The key item for existing customers is to continue to work to not just grow the account, but also make sure your client's business gets stronger. This sometimes means going against your cleint's vendor manager's desires that they be your only contact within an organization. A vendor manager or procurement officer may get told about complaints for the software it is true. They are not always told about the pain for a business unit that is hurting the company's bottom line. This means that quite often, as a business partner, speaking with people outside of the procurement team is essential. I was having dinner with the Head of IT for a large med device company recently. He was trying to use a piece of software to grow a business. The other side of the table wasn't listening to his needs, they just wanted to make sure they got paid. So he asked them point blank: "There are two ways for you to do business with me: You can either be a vendor, or you can be my business' partner. You choose which you'd like to be." I would always rather be the partner.

Vendor contracts... they're the necessary evil of business. 🔥 But let's be honest... managing them isn't the highlight of anyone's day. For scaling businesses, a messy vendor contract system isn't just annoying—it's deadly. Imagine this: One vendor on poor terms can derail a whole operation. So, what is the alternative? Constructing a fortress of consistency with a robust contract management process, that's what. 🎯 Here's how I keep vendor contracts from wreaking havoc: 1. 📁 **Total Visibility**: Ever lose a contract in email purgatory? Establish a centralized repository—a single place for all contracts. Cloud solutions work wonders, allowing access from anywhere. 2. 🔎 **Standardize Everything**: Frankenstein contracts stitched together with assorted terms and conditions are a recipe for nightmares. Develop templates with consistent terms that reflect your business's values, and modify as needed. 3. 🔄 **Automate Renewals & Terminations**: The "oh no, I forgot!" antidote. Leverage software solutions to send reminders for renewals and termination deadlines. Never get trapped in an unwanted automatic renewal again. 4. 🛡️ **Regular Reviews & Audits**: If it ain't inspected, it won't be respected. Routine audits ensure the terms still make sense both legally and logistically. 5. 🤝 **Relationship Management**: Business isn't just paper and pixels; it's people. Cultivate positive vendor relationships. Easy communication and respect lead to smoother renegotiations and modifications. Clarity and consistency on vendor agreements are like pouring rocket fuel into scaling efforts. Without that, I might as well be writing contracts on toilet paper. No self-respecting entrepreneur wants to leave money or opportunity on the table, especially over something as controllable as contract management. There’s a reason legends like Sam Carpenter and Michael Gerber emphasize systems and processes—it’s the smartest way to do business. So here’s today's takeaway… The moment a process for vendor contracts becomes second nature, running a business feels like a downhill sled ride. More speed. Less friction. 🚀 #BusinessGrowth #EntrepreneurTips #ContractManagement #ScalingYourBusiness #SystemsAndProcesses

𝗘𝘃𝗲𝗿 𝗳𝗲𝗲𝗹 𝗹𝗶𝗸𝗲 𝘆𝗼𝘂'𝗿𝗲 𝗱𝗿𝗼𝘄𝗻𝗶𝗻𝗴 𝗶𝗻 𝘀𝗽𝗿𝗲𝗮𝗱𝘀𝗵𝗲𝗲𝘁𝘀 𝗮𝗻𝗱 𝗲𝗺𝗮𝗶𝗹𝘀 𝘄𝗵𝗲𝗻 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘃𝗲𝗻𝗱𝗼𝗿𝘀? Are you stuck in spreadsheets and email chains for tracking vendor relations? In today's digital age, this stat can have a huge impact on how businesses handle Vendor Management - 𝗮 𝘀𝘆𝘀𝘁𝗲𝗺 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻 𝗰𝗮𝗻 𝗯𝗼𝗼𝘀𝘁 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆, 𝗰𝘂𝘁 𝗰𝗼𝘀𝘁𝘀, 𝗮𝗻𝗱 𝗶𝗺𝗽𝗿𝗼𝘃𝗲 𝘃𝗲𝗻𝗱𝗼𝗿. 🔏 The answer? Vendor Management Software - 𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘇𝗶𝗻𝗴 𝗶𝗻𝗳𝗼, 𝗺𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴 𝗦𝗟𝗔𝘀, 𝗮𝗻𝗱 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝘃𝗲𝗻𝗱𝗼𝗿 𝗱𝗮𝘁𝗮. ✅ 𝗛𝗲𝗿𝗲'𝘀 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗱𝗮𝗽𝘁: 1. Embrace automation for contract tracking and SLA management. 2. Invest in software for insights, audit trails, and more. 3. Track vendor performance against contracts, SLAs, and KPIs.   “𝘌𝘧𝘧𝘪𝘤𝘪𝘦𝘯𝘵 𝘷𝘦𝘯𝘥𝘰𝘳 𝘮𝘢𝘯𝘢𝘨𝘦𝘮𝘦𝘯𝘵 𝘮𝘦𝘢𝘯𝘴 𝘣𝘦𝘵𝘵𝘦𝘳 𝘱𝘳𝘰𝘧𝘪𝘵𝘴. 𝘚𝘵𝘢𝘺 𝘢𝘩𝘦𝘢𝘥 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘳𝘪𝘨𝘩𝘵 𝘵𝘰𝘰𝘭𝘴.” Wondering about streamlining vendor relations? Share your struggles with spreadsheets and let's discuss solutions together! #vendor #profits #management #vendorrelations Dr. Gazal Papriwal Naman Narayan Gururaj Bharath Sura Favaz P A Pallavi Patil Shruti Raju Aakash Yadgiri Priyanka Goyal Mangesh Balkawade Balamurugan S aishwarya patil

How should you choose your supplier? 😕 Our new blog post gives you a step-by-step instruction 😁 From problem definition to supplier short-list --> check out this useful article: https://lnkd.in/epwTPVvs Stay tuned and subscribe to our expert blog: https://congruous.ai/blog/ #SoftwareSearch #vendors #problemsolving #SupplierSelection #b2bsoftware #vendors #procurement #procurementstrategy #AIinBusiness #supplychain

#crowdsourcing What would you do if you learned you were only included as an extra vendor to satisfy the company's multi-vendor rule during a project bid, but they sort of already picked their winning vendor? For large project bids, it is resource-intensive for start-ups to meet all the by-the-book documentary and other petty requirements (document should be stapled on this angle only, etc.) and the timeline for the bid from the letter of intent to phase 1, 2, 3, etc. usually take months. After several iterations, you realize that this vendor (Vendor A) always knows what the Customer wants, even submitting requirements very early, knowing that the instructions are vague and need clarification. The Customer will respond to you and Vendor B after 3 or 4 follow-ups, but bulletins are provided when Vendor A asks a question. And the list goes on. Lastly, even the Customer's employees say it is an open secret that Vendor A is always preferred because of its after-sales perks and management relationship. Now, the Customer is asking for financial projections and more resource-intensive related work. Will you continue to participate or drop it?