In a crowded market place where every supplier is talking about price it’s easy to miss any discussion regarding value.
Do the suppliers offer real value or just perceived value (low prices)? Do they identify the tangible or intrinsic value when working with them?
Is it a fair assumption that some suppliers and customers conflate low prices and value?
If a customer is focused on a low price today it could be argued (successfully) they are actually costing themselves in value tomorrow – BHI Ethos
Most businesses are aware of pain points and would act accordingly to mitigate them, however what if certain pain points are masquerading as something else?
If prices were evaluated in a snap shot and purely without due consideration over an appropriate time scale they could lead to a false economy and any projections to spend can become skewed and therefore inaccurate in very short order.
Accounts departments can inadvertently work against the company’s self interest if this approach is active.
The “bean counters” can cost the business time and money rendering them somewhat ironical.
Price is not an accurate indicator of value and never has been.
You can apply that to “cheap” and “expensive” products alike – the fallacious thinking is to assume the more expensive the product the better it is.
That reasoning has more variables to evaluate before an expensive option can be deemed better or the cheaper one inferior.
An example would be a Ferrari and a Fiesta – both are cars, but one looks significantly better when arriving at a destination.
One variable could be perception; is the additional spend worth it if the desired effect is to be considered “successful” in your field?
If that is irrelevant then a Fiesta would suffice in terms of function - moving from one location to another.
Relating that to workwear or uniforms if a company’s perception is that of a successful brand then would it be appropriate to kit out their workforce in bob basic “cheap” garments?
What would you think if you saw those workers or any workers in low quality uniforms?
Would that inspire confidence should you want to engage them?
Would they care enough about your business if this is how they wish to be perceived professionally?
The scope to which a buyer, purchaser, procurement dept or owner applies their logical reasoning to purchasing products must be broader than simply looking at a price tag.
This may seem obvious yet if a buyer is unaware of the variables their ability to evaluate conclusively is impeded.
Having access to data to help with the assessment alongside price can save money, time and intangible “costs” (perception) which may not have a demonstrable sum certain but does carry weight in the evaluation processes of potential buyers.
This is where BHI “add value”, we can assist with pointing out the variables as well as potential consequences of a choosing certain products – we can produce specific data to demonstrate the right course of action for each client.
BHI can provide continual data for evaluation of products for cost centre analysis – we will advise on alternatives using this data to demonstrate greater value and savings.
BHI are not the cheapest nor are we the most expensive – what we are is efficient in selecting the best solutions for our clients. Providing them with confidence, peace of mind and real measurable value which translates to monetary savings.
If your objective is efficiency, then you need to partner up with providers who can deliver when expected to ensure your company has the best chance of navigating anticipated or unexpected pain points.
Call BHI today 0333 101 4030 or email firstname.lastname@example.org