Extreme Value Negotiation
Extreme value negotiation is to purchasing what interest rates are to the cost of debt.
Among the primary things we seek to discover is the amount of money you should be willing to pay for a product or service based on value-added, not prices. Sometimes small products and services are invisible weak links in the organization’s entire order-flow chain. It may make sense to pay top dollar in exchange for certainty in those cases. It makes no sense elsewhere. Our experience is that understanding these perspectives gives our clients a competitive advantage in the negotiation with vendors.
In the end, comparative pricing, value-added analysis and a security trader’s instincts are put to bear on negotiating with a vendor chosen from a carefully culled short-list. Wherever possible, we try to develop a reverse-auction for providing products or services of the best value to your business.
