Wouldn't it be great if we got get the cheapest price on everything. I know I wouldn't want it. Would you? Do you strive to get the cheapest automoblie? The cheapest mobile home to live in? The cheapest place to eat? Rather than look for the cheapest we tend to look for value for our money. We know we all work hard for our money and would like to be compensated if we are to give it up.
The first thing a buyer should look for is if he's comparing apples with apples. Any person who's been to China lately can tell you that you can find a knockoof Louis Vitton handbag for $10.00, $20.00, $50.00 and $100.00. The $10.00 bag looks good from a distance but up close you can notice it's not a real one. The $20.00 bag looks real until you see the seems. The $40.00 bag looks perfect on the outside but the inside is noticeable different. Lastly, the $100.00 bag is an identical bag that can fool even workers at Louis Vitton.
Secondly you should look for reliability. If you need the goods for a certain date and are saving 5% dealing with one questionnable supplier, think what would happen if they are late. If you run a sale on an item, advertise starting this date, and then not have the merchadise, think about the impact on your company. Your company's image is not viewed favourably, secondly the likelihood of this customer returning to your store for a future sale is unlikely and your advertising budget was wasted. Now how much was that 5% savings worth?
Thirdly, look at indirect costs. My company Solutions Ink has set up many companies on our e-commerce ordering systems for printing and promotional products. A daily dreaded routine for most large companies is ordering business cards. The time to compile a list, fax or email, receive a proof, verify with the end user, return the proof or make changes on the proof, all takes considerable time. Along with this time the idea of maintaining a data base for future orders seems like a great idea which even speeds up the ordering process further. By giving our customers instant proofing we can save them hundred of hours annually. This is one direct cost savings not usually looked at, the other is that these employees can use their time more effectively to make their comapny's more efficient and economical. The smarter larger company's have realized this, now the middle size companies are coming on board. Another example of this are cellular phones or blackberries. The direct monthly cost of these items is certainly more than finding a public telephone and putting in a few coins or buying a calling card. However the reason most people use these items is that it saves us time, allowing us to multitask other items which are more beneficial to our companies.
Fourthly, sometimes it's an emotional decision and not a purely financial one. If all companies looked only at the bottom line, no companies would have corporate suites, no executives would be driving luxury cars, their would be no Ritz Carlton Hotels, no luxury development or condominiums. If there would be none of these things life would be a lot less interesting. We could exist but not really live well. If you would like to know more about really helping your company drop me a note at steve@solutionsink4u.com.
Steven Schneidman
President
Solutions Ink
http://www.solutionsink4u.com
After completing a Masters in Business, teaching Finance at a University in Montreal and working at a large Canadian Bank, i have switched gears an owned 2 Printing and Promotional Product Companies. I help large and medium companies everyday achieve their goals.
A major source of communication breakdowns is incongruence between the... Read More
The ability to solve complicated problems quickly is more important... Read More
In Part One, I described the Leadership Talk and how... Read More
How long does it take your customers, clients or patients... Read More
Ten or so years ago, an international consultant, specializing in... Read More
Bar Charts and the Information ChallengeWhether one is an unknown... Read More
Every business must strive to provide quality products and services... Read More
Talk to as many consultants as you can before hiring... Read More
The Cash to Cash Cycle Part Four of SeriesNext: Complete... Read More
To get the best results you have to be very... Read More
Project management is a very important business concept because it... Read More
ISO 9001 2000, Getting startedBefore starting the ISO 9001 2000... Read More
Current Situation:As of this writing, the MCI Board of Governors... Read More
Human Resource Communications and Corporate Communications ? are they one... Read More
How can I "know who knows" None of us can... Read More
A series of articles exploring the seven critical areas that... Read More
The retention of highly skilled knowledge workers is one of... Read More
Do you want to measure your workers' level of satisfaction?... Read More
"Experience is not what happens to a man; it is... Read More
I believe that whether corporations expense their stock options is... Read More
As an experienced manager, I can announce without a doubt... Read More
What happens when a Project Manager asks one of his... Read More
Measure.The first key question to answer in starting a problem-solving... Read More
In the bestseller, Good to Great, Jim Collins discovered that,... Read More
Creativity can be defined as problem identification and idea generation... Read More
The CultBecoming a part of the Cult, consists of being... Read More
When we want to hire people for a corporation or... Read More
Can a person's behavior and values really determine if they... Read More
Positive radical movement is the holy grail of nearly every... Read More
"Here is Edward Bear, coming downstairs now, bump, bump, bump... Read More
Most people just want to be appreciated. If you're a... Read More
It is sometimes valuable to bring the sales manager into... Read More
IBM, which registered 3248 patents last year, has decided that... Read More
Seduced by the publicity surrounding the impact of Lean on... Read More
Not long ago I was asked to come out and... Read More
I've met and worked with many people in all sectors... Read More
Managing a meeting is like setting off on a long... Read More
Most people think real change in an organization occurs as... Read More
The other day I brought my mother into an appliance... Read More
Following is a brief definition of core competencies and competitive... Read More
1. Let people know what you expect. If people know... Read More
Most business owners I work with want to grow their... Read More
Some time ago we had the privilege of working with... Read More
There is every chance that elements of this article may... Read More
Micro-Management and Delegation ... Read More
Sexual Harassment Policy Guidelines ? Part IPermission is hereby granted... Read More
I found it important to clarify for employees what "deal-breaker"... Read More
How you run your business is, of course your business.... Read More
Implementing an ISO 9001 system represents a major effort. However,... Read More
Q: One of my former employees has launched an online... Read More
Creativity can be defined as problem identification and idea generation... Read More
Many kinds of interferences or disturbances can confuse a message.... Read More
"When you hire the best, the rest is easy!" We... Read More
Sir Alex Ferguson has just celebrated his 1000 game in... Read More
The steps need to be taken to prepare an organization... Read More
The study of Behavioral extension involves investigating the source of... Read More
Motivation is a term that is so widely used, yet... Read More
When executives see themselves as solely responsible for the overall... Read More
October 2004 saw the introduction of the Employment Act 2002,... Read More
The main reason is to stop any potential lawsuits from... Read More
Left alone it doesn't take long for a building with... Read More
One of the major benefits, if not THE benefit of... Read More
February 2nd, at approximately 7:30 a.m. local time on Gobbler's... Read More
Creativity can be defined as problem identification and idea generation... Read More
Everyone wants to succeed in life. And no one starts... Read More
Merely assigning a task with detailed instructions is not effective... Read More
Business Management |