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Is It All About Price?, Part I


PurchTips - Edition # 45

By Charles Dominick

 

What Do You Consider When Making A Decision?

I recently had the enriching opportunity of speaking to a group of sales professionals. I asked them to tell me about the experiences they've had with purchasing groups that have frustrated them the most. I got some interesting responses!

One phrase that was repeated often was, "It's all about price!" These sellers felt that many purchasers do not seek the supplier that will best serve their organization, but instead always seek the cheapest supplier.

I assured them that this was not the case in most progressive purchasing and supply management departments. However, that is not to say that their perspective did not have merit. It does.

I summed up why they had the experiences that they had in this blurb: "It all comes down to what can be quantified in financial terms. When price is the only thing that appears to be quantifiable then, yes, it does all come down to price. However, when paying a higher price can yield a quantifiable return (e.g., minimizations of other costs), a well-trained purchaser will make the decision that has the most favorable net impact on the bottom-line."

There are many other aspects of doing business that affect the bottom line. Are you considering them? If not, consider evaluating how these costs differ between competing suppliers:


In the next resource, I will teach you how to calculate the cost of poor performance (quality, delivery, service). Until then, all the best...

Charles Dominick
President
Next Level Purchasing, Inc.

Spotlight On Professional Development Opportunities

Your CEO wants to know: "Are you executing a cost savings strategy or are you just 'winging it'?" Could you respond by producing a top-notch written strategy? If not, Next Level Purchasing's online class "Savings Strategy Development" can help you. You will learn a systematic method of establishing a cost savings strategy in your organization. Your plan will be comprehensive, covering everything from analyzing your spend to executing and continually improving savings processes.

Learn more about "Savings Strategy Development," our other online classes for purchasing professionals, and available bonuses, at:

www.NextLevelPurchasing.com



FREE Offer!!!

Is poor supplier performance driving you crazy? You won't have to work so hard if you apply certain proven techniques for evaluating and improving supplier performance. If you have wanted to implement a supplier ratings program but had difficulty getting started, Next Level Purchasing's online mini-course "Managing Supplier Performance" (MSP) is the perfect class for you. And, oh yeah, it's FREE!!!

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