Understanding Pricing
Procurement has grown in prominence as its role as the champion of cost reduction has been
recognized. Increasingly procurement is seeking support from the major consulting firms, all of
whom have developed specific procurement products to analyse expenditure and identify the
potential for cost reduction.
Negotiations with customers tend to focus on price: and not just a supplier’s price but also the
price as it compares to other suppliers. This makes it hard for suppliers to highlight the virtues of
their product or service. Getting inside the mind of the purchaser and the client purchasing
organization is key to understanding how to develop a defence against the continued attack on
price.