Why train in commercial awareness?

by | 2 Nov, 2016 | Business, Commercial, None

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Throughout my career selling to the public sector, all negotiations come down to a relationship.  Whether that is a relationship between a single sales representative and a procurement manager, or a commercial organisation and a hospital, or local council.

A commercial organisation needs to make a profit in order to exist.  Although all other aspects of service and care are very important, without a profit there is no product or service, therefore staff will be targeted on profitability.  Long-term profitability is not about selling at the highest price, but selling at the highest acceptable price whilst maintaining the standards of service that the customer needs at the same time as building and maintaining a good partnership relationship with the customer.  Partnership relationships allow both parties to understand and explain what is essential, what improvements are possible, at what cost (materially and financially), and jointly develop products and services to meet the needs of individual patients and a growing population.

A public sector organisation needs to procure products and services within a limited budget. Although all other aspects of service and care are very important, the budget is often fixed and therefore staff will be targeted on long-term sustainability – delivering savings whilst sourcing more products and services to meet growing demands. Long-term sustainability is not about sourcing at the lowest price, but getting as much return as possible from a pre-determined budget, whilst maintaining the standards of service which the public needs. This can be achieved through building and maintaining partnership relationships with suppliers.  Partnership relationships allow both parties to understand and explain what is essential, what improvements are possible, at what cost (materially and financially), and jointly develop products and services to meet the needs of individual patients and a growing population.

Good partnerships are built upon mutual trust, and understanding of the needs and drivers of both parties.  They are balanced, and open with both sides of the negotiation having respect for the other.

We offer training to help you and your organisation understand what makes your customers and suppliers tick. Helping you to establish productive and mutually beneficial partnerships.

 

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