Who Has the Best Price?
It's a fair question despite all the arguments against it.
Distributors ask it privately nearly every day, whether on a forum or by using an industry research tool. Clients do it too. So do suppliers.
We should all get, and give, the best price from every transaction.
Consider this scenario of purchasing 500 widgets:
Vendor A - $1.99 each - $995 total
Vendor B - $2.99 each - $1,495 total
It's pretty clear that saving $500 is the right answer, and most of us will quickly choose Vendor A.
Obviously, there is more to the cost than the above, or this would be a very boring post (perhaps it is boring either way, but at least it is short). If vendor A requires several extra phone calls to process the order, it may still be worth the $500 savings. But what if a high percentage of products is defective, or Vendor A markets to your client directly and you lose future business? Of course, if vendor A doesn't ship on time, the cost just went up significantly, since you may lose the entire order.
We all know that quality and service comes at a price. There is no need for me to spell out all the ways a low price isn't always the best price, we have all been burned.
So go ahead, ask who has the best price. Just be sure you factor in all the costs included in the price before you place the order.
Dale Denham, MAS+, is the chief information officer at Geiger and is currently running for the PPAI Board of Directors. Learn more about him at www.facebook.com/choosedale. Read Dale's thoughts on technology, business and the promotional products world every other Tuesday. Follow Dale on Twitter @GeigerCIO.