Is your customer telling you one thing, and doing another? Consider this paradox:
• Most sellers say customers in their market select the solution with the lowest price • Most customers say they seldom select the solution with the lowest price
The reality is that most customers try to select the best value solution within their budget. And each customer has their own perception of value. Tangible value is the quantified improvement in a customer’s profit or a decreased loss. Intangible value is by definition not easily quantified and is often undervalued by both seller and buyer.
Even for government procurements, price is rarely the single factor that determines a buying decision. Other, less tangible factors influence the buying decision, contributing to the customer’s perception of value. This is true, even for commodity items.
To win business with the value of your solution, rather than the lowest price, you need insight into the value the customer perceives in the market and in your offer.
More information on this subject is in the Shipley Capture Guide – see COSTING.