How not to buy software

A software salesperson wrote to me today, with an interesting question. This sales rep, who works for a major Tier I vendor that will remain unnamed, is trying sell to a prospect that is, let's say, acting a bit aggressive toward potential vendors.

Frank, I would like your input on what you think about a potential client. This prospect first ran software suppliers through an extensive custom demonstration, detailed RFP response, and sales presentations. The prospect then made some first-round cuts to get to a short list and is now going into a reverse auction process in which they are introducing some new suppliers. This is a major multi billion dollar company.

Mind you--we have been respecting the prospect’s process and rules, and now they pull this. It makes me wonder how the software industry will ever stay in business.

This prospect has also stated how important it is to build a strategic relationship. Also, the software solution isn't a simple straightforward application that anyone can do. In other words, it's not a commodity.

Your thoughts? Have you run into companies buying software like this lately?

To be honest, I've never seen a company attempt to buy software like this. But let's turn it around and ask readers. If you're a software buyer, would you use a process like this? If you're a software vendor, what would you do in this situation? Click on the Read/Post Comment link below, or send me an email with your thoughts.

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