What is NaaSive Elite Negotiations?

The Problem / Category Education 

The procurement function is universally under-resourced

The procurement function is often under-resourced in many organizations. Despite being a critical business process that directly impacts cost savings, within the finance function only 3.5% of headcount has explicit procurement titles, indicating that procurement is not always viewed as a distinct and specialized area within finance.

According to a study by OnGig, 51% of procurement leaders don't believe they have the capability to deliver their procurement strategy. This is concerning, given that procurement strategy can be a key driver of value for businesses. However, the lack of investment in development opportunities may be a contributing factor, as 72% of procurement budgets are spent on other things besides development.

Overall, it's clear that many organizations could benefit from investing more resources into their procurement function. By doing so, they may be able to improve the effectiveness of their procurement strategies and achieve better results.

Sales innovation is moving at “ludicrous” speed

Sales investment and innovation are moving at a breathtaking pace, driven by the importance of enterprise customers and their impact on B2B revenue. Sales and marketing innovation is constant, with a range of technologies and techniques available, including CRM systems, pipeline automation, account-based marketing, and natural language processing AI insights.

The evidence of this pace of innovation is compelling. Top-performing sales and marketing teams are 2.8 times more likely to be well-versed in AI and use three times the amount of sales technology compared to underperforming teams, according to SalesForce. Additionally, 76% of B2B salespeople believe that sales technology is the key to closing deals, while companies using automation have surpassed revenue goals in 2020, as reported by Hubspot. Fronetics reports that companies with automated lead nurturing have seen a substantial 451% boost in qualified leads.

These findings make it clear that companies are investing heavily in sales technology and techniques, and the benefits of this investment are tangible. Sales investment and innovation are not slowing down, and companies that fail to keep pace with the latest developments risk falling behind their competitors. 

Buyers have a structural disadvantage - they’re setup to lose

Buyers face a significant structural disadvantage in transactions that create or renew expenses, as they are often set up to lose. This is due to the stark contrast between the level of investment in Sales compared to that of Procurement/Buying. The result is a scenario where transactions favor Sales terms, and this advantage only grows over time, with compounding effects leading to increased expenses.

Despite its impact on P&L, there is little discussion of this issue. This puts companies at a disadvantage when it comes to negotiating favorable terms and securing the best deals for their organization. The lack of investment in Procurement and Buying means that companies are not able to effectively counter the influence of Sales, leading to an uneven playing field.

This structural disadvantage can have a significant impact on a company's bottom line, and it is crucial that companies recognize and address this issue. Investing in Procurement and Buying can help level the playing field and ensure that organizations are able to secure better deals and improve their financial performance. By recognizing the importance of this issue, companies can take steps to address it and ensure a more balanced and equitable approach to transactions.

The Opportunity

Massive Expense Growth

Company expenses are a major concern, as they represent a significant portion of organizational spend on both a percentage and volume basis. Non-payroll expenses, in particular, can range from 20% to 40% of total expenses for many companies. Furthermore, corporate expenses are rising at an alarming rate, outpacing inflation by as much as 40%. This trend is not sustainable, and companies must find ways to manage their expenses more effectively.

Adding to the challenge is the fact that companies work with hundreds, sometimes thousands, of vendors, along with tens or hundreds of thousands of suppliers. Managing these relationships can be a significant drain on resources, as companies must negotiate and manage contracts, ensure compliance with regulations, and maintain quality control.

As expectations for growth continue to rise, companies will face increasing pressure to invest in order to fuel that growth. Even companies with strong ROI must invest in order to remain competitive and meet the demands of shareholders. This investment inevitably leads to increased P&L expenses, which can be a major challenge for companies to manage effectively.

Cost Reduction Always Improves P&L

The Profit and Loss statement, or P&L, is a reflection of a company's revenue, expenses, and income. A company's income is a measure of its long-term viability and is closely tied to dividend payments, which are immediate short-term distributions to shareholders. While external factors such as geopolitical and economic events can impact a company's P&L in positive or negative ways, cost reduction is a factor that can be controlled by the company and is less impacted by external factors.

It's important to note that both revenue and expenses affect a company's income, but expenses are more easily controlled. Therefore, cost reduction can have a significant positive impact on a company's P&L. 

Overall, cost reduction is a critical component of a company's P&L management strategy. By reducing expenses, companies can improve their bottom line and ensure their long-term sustainability.

Negotiation Is Critical, Elite Negotiation is Transformational

Negotiation is a critical part of any business, as it directly impacts expenses and therefore, the bottom line. While some companies lack a procurement team altogether, a properly trained procurement team can return a 2% reduction in expenses. However, this is just the beginning.

The real transformational impact comes from elite negotiation skills. An elite negotiator can reduce expenses by 5%-25%, sometimes even more. However, the role of a “Lead Negotiator” or “Chief Negotiator” is rare, and the term “Negotiator” does not even appear in job titles within the Finance function, according to OnGig.

Engaging elite negotiators is the most proactive approach for companies to tap into this opportunity. By investing in elite negotiators, companies can unlock significant cost savings and improve their bottom line.

Elite Negotiations with NaaSive

Elite Track Record

Our team of Elite Negotiators has a track record of success, consistently delivering savings on 80%-90% of contracts. These savings can range from 5% to 50% of the contract value, and negotiations can take anywhere from a few hours to a few weeks.

With over $5 billion worth of contracts negotiated at top-tier companies such as McKinsey, Samsung, American Express, and Houghton Mifflin Harcourt, our team has proven expertise in delivering results. In fact, one of our Elite Negotiators achieved $45 million in savings for a single company in just a few years.

Our team includes individuals who have held roles such as Lead Negotiator and Chief Negotiator at major corporations, giving us a unique perspective and understanding of the negotiation process. By engaging our team, companies can take a proactive approach to cost reduction and tap into the expertise of elite negotiators.

Focused Disruption

There are some alleged competitors in the market that disrupt the purchasing process in ways that are not productive for buyers. For example, some SaaS buying platforms aim to streamline procurement, but in reality, they accelerate the purchasing process and may result in overpayment. On the other hand, some competitors aligned with private equity focus on enforcing rate cards by meticulously reviewing years of records, which can bring the purchasing process to a grinding halt. These disruptive approaches can be counterproductive, making it difficult for buyers to negotiate better prices and secure cost savings.

NaaSive's goal is to create a focused and time-bound disruption that can deliver significant cost savings. The disruption is focused because, as operating partners inside companies of all shapes and sizes - from high-growth startups to the Fortune 500 - NaaSive never blocks growth but instead enables it. The team achieves this by ensuring that the scope of what's purchased matches the needs of the buyers and by delivering cost reductions in a timely fashion that helps fund growth initiatives and the bottom line. NaaSive's contract negotiations typically range in duration from a few hours to a few weeks, making it a truly focused disruption.

Completely Aligned with Buyers

With NaaSive, there are no commissions paid by vendors nor painfully slow processes unlike the “competition”

SaaS buying platforms can get commissions paid by the seller vendors they’re negotiating with on the “buyer’s” behalf; if an organization is getting paid by both the seller and the buyer, then who do they truly work for; some are even creating ancillary revenue streams off these transactions; how can they stay focused on the buyer winning? Spoiler alert, it’s not possible.

Private Equity rate card enforcers “show off” a painfully detailed approach to Private Equity funds and could feel little accountability to the operating partner buyer

NaaSive’s fees are entirely performance-based; Only when buyers win does NaaSive win. There is no fixed cost to retain NaaSive.

Case Study 

In this case study, NaaSive helped a customer save $1.3 million in just 3 months by negotiating 12 contracts in 12 weeks. Approximately 5% to 67% was saved on each contract and completed each negotiation in 14 days or less, with 5 of them being completed on the same day. NaaSive's elite negotiation skills delivers substantial cost savings for businesses in a short amount of time.

Next Steps

Setup an appointment to discuss your specific situation and get your questions answered; and/or, send over some contracts to see NaaSive in action.