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As your organization's buyer, do you read formal purchasing agreements?

Only for a formal written contract.
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Only skim unless for a high amount.
Read every written agreement in detail.
Only read from a new or recent supplier.

Professional buyers are expected to be on alert to cons and frauds, but it is easy to be taken in. Con a..." />

Frauds and Cons Abound

Date: 11/01/2009

Professional buyers are expected to be on alert to cons and frauds, but it is easy to be taken in. Con artists, as the name implies, are clever in deceiving even the most sophisticated among us.

Buyers are likely to be vulnerable because they are so accustomed to exaggerations and "white lies" from salespeople while selling their products or services. For example, who has not heard "you must order today in order to get this offer". This is seldom true.

More flagrant deceptions by salespeople are common, such as omitting to reveal that extra expenses will be necessary in order to install or use their product.

Salespeople try to give gifts and entertainment to buyers to influence the buying decision, but real con artists do the same thing to encourage you to accept an outright fraudulent deal. Don’t be swayed by a free offer. You are less likely to fall for a con if you use the following suggestions.

Ö Avoid acting hastily. When possible, put off immediate buying decisions until you have had a chance to carefully analyze the offer in private without interruption.

ÖMake sure you read brochures, offers, and proposed contracts carefully including all the fine print.

Ö Know who you are dealing with. Do a credit check and reference checks on new suppliers.

ÖBy extra suspicious of offers that sound too good to be true or that are unusual.

ÖMake sure the supplier has a physical address that you are familiar with, preferably that you have visited.

ÖThoroughly question the salesperson’s statements and note if your question is answered rather than being ignored. Evaluate any answer for reasonableness. Look for inconsistencies in the salesperson’s claims.