Wednesday, 6 February 2013

You Get What You Pay For

Guest author – Guy Allen

You Get What You Pay For ....

How I hate that phrase. It’s just an excuse for the lazy to pay more for something than they really need to, or perhaps in private life, to justify buying the latest sparkly phone with all the bells and whistles on.

I’d hope most of my industry colleagues wouldn't be seduced by such a statement. Prices are set by the rules of economics, with a little amendment for buyer/seller power, where either party may seek to bend those rules to their advantage for some short term gain.

And too often negotiators approach their objectives with a very singular approach. Yes of course you need to do a negotiation plan, but it needs to include flexibility to allow you alter your approach according to how the situation develops. Sure there are times to get emotional and bang the table, but you subsequently you might be best served by pursuing the logic of the cold analysis of a PPCA (Purchase Price Cost Analysis).

So let’s ditch the phrase 'You Get What You Pay For’, and replace it with 'You Pay What You Deserve to Pay’ and bear it in mind when you enter your next important negotiation.

I’ll be exploring this theme in more detail in my upcoming BravoSolution Real World Sourcing Session. There are a few places remaining, which can be booked here. I hope to see you there.

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