Have you lost a sale based on a few percentage points difference
in price? If so, what does this imply about the customer's
perception of the value you add? For many suppliers it implies
that the customer often sees little difference between suppliers
except price. But most suppliers do add value and some customers
are looking for solutions to reduce their operating costs
beyond normal pricing issues. It is these expectations that
are driving customers towards alliances and other forms
of enhanced supplier relationships. Those suppliers that
can show the value of what they add can enjoy a competitive
advantage over those who cannot.
But to get customers to buy on total cost and not just price,
suppliers have to do more than talk about their "value
added" services/products. They have to be able to document
their impact in dollars. We help companies:
