Insights — Channel Creation & New Revenue Streams — 3 min read
What Changes When Selling to Procurement Teams?
Selling to a consumer is a conversation; selling to a procurement team is a process. Understanding that process is the key to winning large commercial contracts.
In short
When selling to procurement teams, the focus shifts from brand appeal and immediate features to compliance, risk mitigation, and total cost of ownership. You must be prepared to provide detailed documentation on your financial stability, your sustainability policies, and your insurance coverage, while also navigating formal tender processes and extended negotiation periods that are absent in the B2C market. Success requires patience and a willingness to adapt your business operations to meet their rigorous audit and reporting standards.
If you are used to selling directly to the person who makes the decision, selling to a procurement team can be a shock. You are no longer just selling a product; you are selling compliance, reliability, and administrative ease.
Procurement teams are designed to manage risk and reduce costs. You must speak their language to succeed.
The gatekeepers of risk
Procurement teams are not just looking for the best product; they are looking for the lowest risk. If you are a small consumer brand, you represent a risk to a large corporation. You must prove that you have the stability and the processes to be a reliable partner over the long term.
Commercial reasoning: The cost of compliance
Meeting procurement requirements has a cost. You may need to invest in new certifications, better insurance, or more robust reporting software. Ensure that the size of the potential contract justifies these investments. If the cost of compliance is higher than the potential margin, the contract is not worth pursuing.
Validate before you build
Review a typical tender document in your industry. Can you answer all the questions? Do you have the necessary documentation? If not, start building those capabilities before you attempt to win a major contract.
When NOT to do this
Do not pursue large procurement-led contracts if you are not prepared for the loss of control. Procurement teams will often demand changes to your pricing, your delivery methods, and your contractual terms. If your business model relies on a fixed way of working, these contracts may be too disruptive.
Could your business support another route to revenue?
Evans Channel Creation identifies, validates and builds additional revenue channels from capabilities a business already has — B2B to D2C, D2C to B2B, product to service, recurring revenue or partners — and says so plainly when a channel should not be built. Programme from £1,995 + VAT per month over six months.
Related services