What a week!

Have you ever had one of "THOSE" weeks? I have had it this past week. I started out making a sales call, something I don't do much of on a regular basis these days. I had almost forgotten that famous line: "YOUR PRICE IS JUST TOO HIGH! I AM BUYING IT CHEAPER!"

Now remember the role of the sales person is to sell and that the customer is always right, not always honest, but always right, from their point of view. I asked this person what basis they were using to determine that my price was too high. They looked at me like I just fell off the boat, then with all the patience they could muster, replied - I'm paying my current supplier XX amount less than your price. Really I replied? And everything else is exactly the same? Well, after a few more questions we did determine that there were several differences in the materials that we were trying to compare.

Then I asked the "KILLER QUESTION": What is the VALUE or true cost of what you are purchasing? Let's think here for a moment about buying gasoline for your car, that way we can ALL AGREE that the price is way too high. Or is it? What if you just refused to purchase? Can you get around in your life without gas for your car? What would that cost you in time and other inconvenience? A friend of mine is currently on an extended visit to Europe for several months, and she has no car. So even going grocery shopping takes on an entire new challenge for her - how can she buy what she needs and then walk back to her apartment without a car and carry everything? She walks from her apartment to the bus, from the bus to the train, from the train to the grocery, then after shopping must repeat that process. She would gladly pay the current $4.00 a gallon right now if she could. And it wouldn't seem like she was paying too much considering what she currently has to do just to get groceries. PLUS she has to repeat this process several times every week.

Bottom line here is that the price someone invoices you for goods purchased may not represent the true VALUE or true COST of what it is you just bought. Think about that for awhile and then see if you don't agree. By the way, I overpaid for my airline ticket this week also, but arrived safely on both flights ( that is certainly worth any amount of money to me) and I got upgraded to first class on both flights - all at once my ticket didn't seem quite so high.

I suppose I am suggesting that both the sales person as well as the purchasing agent may want to consider many factors in doing business together before either one determines that a price is too high or too low. Maybe somehow the value of a great business relationship can figure into that pricing equation.

These are my thoughts what are yours?
Steve