Brand Loyalty and Cost Reduction

February 23rd, 2022

Oftentimes, people stick with the same services, even if they know they cost just a little bit more.

 

Today’s post is written by Patrick Quinn a Procurement Specialist at SafeSourcing Inc.

Oftentimes, people stick with the same services, even if they know they cost just a little bit more. In normal circumstances, this is certainly a smart thing to do. Many times, cost you know is better than the one you don’t. But, when it comes time to cut costs, it would be nice if your service could bring its price down just a little bit. E-procurement is fine way to not only test the market to see if your brand really holds up to the market standard, or if it’s time to move on to greener pastures.

Even if your preferred service isn’t necessarily the best price on the market, quality service is a perfectly valid reason to keep your incumbent supplier on the books. RFQs frequently don’t see the lowest price receive your business, instead, a reasonable price with outstanding service swoops in and wins the bid. Your goal might not even be to find a new supplier in the first place. Sometimes, just putting the pressure on your incumbent supplier is enough to state that cost cutting is now becoming a serious factor.

Brand loyalty can be a powerful factor in decision making, and on the surface, e-procurement can sound like a way of upsetting your current suppliers. But by reaching out and giving your suppliers a fair chance, you can challenge them for a better cost without cutting them out completely with a sudden influx of new quotes you want them to match. A little bit of transparency can go a long way!

To help you find the source of your rising costs, please contact a SafeSourcing Customer Service Representative.

 

 

 

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