I’ve done a few presentations titled something like, “HR Tech Buyers Guide”, “How to Buy HR Tech”, etc. The presentation is designed for HR and TA practitioners to help them become better buyers of HR Tech. To understand the crap that HR and TA Tech vendors do and say to get you to buy stuff you might not need, want, or will use.
The interesting thing about these presentations is that half the audience turns out to be the actual vendors themselves wanting to hear what it is I’m telling the real HR and TA leaders! It’s smart for the vendors. It helps make the better sellers as well. Well, at least some that actually listen!
Based on these interactions I decided to build a series of what has come out of interactions with the vendors themselves, aptly named “Notes to HR Tech Vendors”. Look I don’t alway have to be creative! Enjoy!
Notes to HR Tech Vendors #9 – Buyers Hate Buying Airline Tickets
The biggest frustration that Buyers of HR Technology have is they feel like they’re getting screwed! It’s the same feeling you have when you go to buy an airline ticket.
You’re not quite sure you got a good price. You think it’s sounds about right. Okay, $400 to go from Detroit to Dallas, seems reasonable. Then you get on the flight and sit next to Mary and she tells you she got a great deal on her ticket, $179!
At that point, you want to throat punch every employee of that airline! Car buying is the exact same experience.
I’m not sure why an organization (HR Tech companies) would ever choose to have a buying experience where ever person polled will tell you they hate it! “Yeah, you know what we should do to become a successful tech company? Let’s piss off every buyer who purchases our product!”
The funnier part is, HR buyers would be happier paying a higher amount if they knew everyone else was paying that same amount! You can actually increase your margins by just going to an advertised one-price-for-all model! “Well, if Google paid $25K for it, I guess I feel pretty good we’re paying $25K as well!”
A few HR and TA Tech companies have taken on this strategy of publishing the prices of their products, but even most of those will still have that “magical” on disclosed “Enterprise” price which is based on higher volume! So, yeah, I’m paying $19 per user, like everyone else, but Google is paying something less…not sure how much less, but my mind is telling me it’s $3!
HR Buyers aren’t shopping for a used car. They’re shopping for a partnership. A company that will help them and their organization get better. They’re willing to pay good money for that. So, why are you still treating them like they’re an idiot?!
Oh, yes, you are! You trying to swindle them out of an extra grand or two is showing them you don’t respect them or the relationship, that you only care about money, but helping them get better. Even most of your salespeople hate it. They would rather just say, “Look it’s $25K, for everyone, we don’t negotiate price. What we will do is make sure you get every dime of value out of this and then some.”
That’s a much easier sale and starts the relationship off on the right track.