Procurement at my key account says we're the most expensive. Can our champion defend me?

Procurement at my key account says we're the most expensive. Can our champion defend me?

Procurement will find the places where you cost more. Your champion needs proof in hand to explain why the difference is worth it: results in the customer's own numbers, case studies, and a track record they can point to.

Five questions to see if your team can do this job today:

1. Does your KAM know where you cost more than the alternatives, and why?
2. Is there a proof point for each of those areas, in the customer's own numbers?
3. Are your case studies ready before the RFP arrives?
4. Could your champion explain the price difference without your KAM in the room?
5. Does your renewal story lead with your past performance and the strength of your team?

Two or more no's, and price may carry more weight in the comparison than it should.

Several years ago, our contact at an active customer asked us to cut our prices by 10%. If we didn't, they would not renew the contract and would stop using our services. That put about $3M in annual revenue at risk, and our price was higher than our competitors'. I knew before the call that we were indispensable to this customer. We had spent the year before building the proof: executive relationships, champions who sold on our behalf, strong feedback from their teams, and aligned account teams across five locations. The answer I gave her was a polite "no." We protected 10% of our gross margin and went on to become their number one supplier overall.

Pricing power is built before the pricing conversation ever happens. Your team builds it by putting proof in your champion's hands long before procurement asks why you cost more.

Our system, the Vitality Index, shows your key account teams where they stand today, the work it takes to level up, and how to do it, until they reach a vital partnership that lasts.

If procurement asked your champion today why you cost more, what would they say?

We built a free, 4-minute Key Account Risk Assessment. It gives you a risk score for your key accounts across team alignment, account planning, account transitions, and visibility. Link in the comments.