We are seeing a buyer’s market, and these are some of the real-world indicators.
Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing
If you are a buyer, I have some great news for you. Are you a buyer? Whether you are a professional working in a procurement related role or not, I say we are all buyers. If you sell a product and you are concerned about margins or your ability to compete on price in the market, you are a buyer. If you are responsible for your company’s financial health in any way, you are a buyer.
What is the great news? We are in a buyer’s market. Let me share two of the real-world indicators we have been taking note of at SafeSourcing. Many of our current customers are taking full advantage of this situation while it lasts.
Indicator I: Results
SafeSourcing’s historical savings has averaged about 24.8% for the last several years. More recently, we are watching as that figure is rising. In June, SafeSourcing’s customers saved 29.7% on average and in July, they saved an astonishing 32.7% on average across all the spend categories sourced with us. That trend is impressive on its own, but is only made more so by the next indicator.
Indicator II: Vendor Behavior
SafeSourcing has a good working relationship with many of the vendors who participate in the eRFx events we host for our customers. Recently, we have been having vendors reach out to our associates with unsolicited offers and quotes hoping for new business for several categories indicating that prices are as low now as they have ever seen them. In many conversations, the vendors are also telling us how their business is suffering as a result of industries like hospitality being down which has caused their sales volumes to plummet. The vendors are very eager to win new accounts.
If I am right, and this is a buyer’s market, do not expect that you will see your prices drop by a third all on their own. Your current vendors are not going to come to you proactively to lower your prices. As buyers, we have to work for the cost reductions we deserve. We have to constantly hold our vendor partners accountable through meaningful negotiations and we cannot be afraid to change vendors when it is the right decision for our own company. You can get these results with help from SafeSourcing.