The Price is Right
“Knowing the price of everything – but the value of nothing!”
It’s difficult to buy with confidence, unless you are a professional buyer – when dealing with often some very good salesmen you are definitely at a disadvantage. The advice of getting three quotes is fine if you understand more than your name, date and the price – how on earth do you unravel the technical details and specifications presented to you when that’s not what you do?
You might be trying to supply a customer who seems intent in screwing you to the floorboards. You can’t provide service if you have no margin and ultimately the business relationship is going to fall short and perhaps fail.
In any transaction both parties need to come out with something (buyer and seller).
Gary a few years go now came across a client who just went on price.
In a previous galaxy in a land far far away Gary worked with a technology business. He was asked by a building company towards galafray that wanted to upgrade it’s existing radio communications system, improve coverage and in addition it wanted a “Trunked” system that allowed individual calling to each vehicle. This required more complex equipment and management.
Gary quoted £8500 (We told you it was a while ago!) by utilising some of the existing equipment and included putting a Repeater station up on a hill. The Client chose a supplier who was going to do it for just over £6000 – you win some you lose some! (He did loads of business with his brother though).
A couple of months later Gary had a phone call – “are your prices any keener yet as this bloke has messed up my radio system?”. You knew it was coming and now there was a complete mess to clean up, so Gary had to add £1000 to clean up the mess.
The lesson was that £6000 was not the right price and assuming that they had paid some money upfront to the other business the total cost now would be far higher than it should have been.
In any transaction, both buyer and seller need to come out with something of Value and that’s not just the Best Price.
On our “What would you Banish to the Basement of Stand 101” competition at the Cornwall Chamber Business Fair this year Mark Picken of MPAD won his experience day with his daughters at the Cornish Birds of Prey Centre for just the reason we have outlined above. Zamu are sure we would all like to banish price over value choices into the basement.