The Best Advice I Ever Got
As a young material manager I was counseled by my mentor at the time that “there is always a better price, a better deal or a better offering if you want to wait long enough to cash in on it. However, while you are waiting you are missing big savings opportunities along the way”.
That’s why from this point forward I didn’t accept any bid after my bid deadline, didn’t listen to so-called sweet heart deals until my current contracts were coming to an end, and never cancelled a contract because a better deal came my way. I have found, as years pass, that not only was my mentor’s advice prudent, practical and wise, but from a time management standpoint, it was the only way to do business without going absolutely crazy.
If you or I routinely jump from vendor to vendor because they have a better price, deal or offering,, we are actually losing money along the way since the time, money and resources required to introduce, value justify and implement a new contract is eating into your savings.
A much better way to achieve price parity at all times I have found is to have long term contracts (3 to 5 years) with fixed prices along with favorite nation and cancellation clauses to protect your investment. This way you are virtually ensured of the best pricing over-the-long- term and, as a bonus, the lowest cost-to-change imaginable where real tangible savings can be attained.
