December 1, 2021

5 typical pitfalls when the company enters into procurement agreements

Image of calculator on desktop.

1. You place too much emphasis on loyalty and think you are rewarded for it

It is often claimed that loyalty pays off, but our experience is that this is a myth. Loyal customers, on the contrary, often become price losers.

How many times have you experienced being approached for a better price just because you have been a loyal customer for x number of years?

Hardly often.. On the other hand, have you experienced being “rewarded” with a better price the times you have “threatened” to end the customer relationship?
Unfortunately, that's often how reality is.

Loyalty can and should, of course, be a good bargaining chip in an existing customer relationship, but it helps little if the bargaining card is just lying in the drawer.

We have seen several examples of new customers coming in to a supplier and achieving better prices than a customer who has been loyal for 20-30 years.

The point is that there is no automatism in that loyalty pays off.
The Loyalty Card must be actively played in order to win. With good expertise in negotiation technique, IG helps you play it right.

2. One is flattered by a “high” discount percentage

Have you ever been flattered to hear “You guys have the very best discounts here with us”...


Or maybe you have experienced buying a pair of shoes at a 50% discount and known the good feeling of having made a “bargain”?
Until you discover the same shoes at an even better price at a competitor...

Because we love to bargain, we let ourselves be lured by high discounts, and then it's easy to forget that after all, it's the sum on the cash register that counts.

Does that mean discounts are worthless?
Of course not, discounts and discount deals are usually valuable, and an important part of a profitable purchasing strategy. But a discount alone rarely gives you a full picture of whether the price is good.

Therefore, it is important not to look blindly at a discount percentage, but take the time to check the price with several suppliers.

We know that this can be time-consuming, Purchasing Group is therefore actively assisting our customers with quote retrieval and price negotiations.

Here you can read more about how the Purchasing Manager works

3. People don't map their needs well enough and pay dearly for solutions and services they don't need

Do you need a printer that both staples and folds or do you just need a simple machine like a printer and scanner?

Do all employees need 50 GB of data in their phone plan or could money be saved by customizing the subscriptions for each employee?

Are you paying for an occupational health service that includes a much broader range of services than you use and need?

These are examples of what we map in our customers and areas we help our customers save a lot of money.

Take a look at some of our partners


4. One forgets to consider all cost aspects of the deal

Once you have managed to negotiate a good price for a good or service, it can be easy to settle on this.
But do you remember to take into account what you have to pay for goods that are outside the agreement?
What about the shipping costs? What fees might apply?

Procurement is complex, many factors come into play. In Purchasing Manager, we work with many customers in different segments that allow us to gain new valuable experiences all the time that benefit our next customer.


5. One forgets to renegotiate deals.

Who hasn't filed a deal and thought that this one I'll have to remember to renegotiate in a year or 2...
But is it being done?

When was the last time you looked over your renovation deal? When did you take a round on the insurance policies?

It's no wonder this slips for a general manager who has 1000 other tasks to follow through the year.
But there can no doubt be huge sums to be saved in getting this done.

If you hire us as your purchasing partner, you can be assured that this will be taken care of and that agreements and prices are regularly renegotiated.