Have
you lost a sale based on a few percentage points
difference in price? If so, what does this imply
about the customer's perception of the value you
add? For many suppliers, it implies that the customer
sees little difference between suppliers beyond
price. Most suppliers do add value and some customers
are beginning to look for solutions to reduce their
operating costs beyond normal pricing issues. These
expectations are driving customers toward alliances
and other forms of enhanced supplier relationships.
Those suppliers that can document and demonstrate
the value of what they add will gain a competitive
advantage over those who cannot.
To get customers to buy on total cost and not just
price, suppliers have to do more than talk about
their "value added" services or products. They must
be able to document their impact in dollars. We
help companies:
- Identify what is "value added" from their
customers' perspective.
- Determine where a supplier adds the greatest
value to their customers.
- Measure the impact they have on a customer's
total operating profit.
- Determine where the numbers come from for
documentation.
- Develop the tools and templates for documenting
the impact you have.
- Show current accounts the dollar value of
what you have added.
- Develop a profit improvement proposal for
penetrating new accounts and retaining current
ones.
- Get your customers to "buy" on the value
you add.
Most of our clients are able to
document between 10% and 30% savings compared
to annual sales with specific customers. Think
of the competitive advantage that can provide
if you were able to do the same! |
