Low pricing is usually one of the most important factors to be considered when choosing a vendor to do business with. It is also fairly easy to find out if you are getting the best price simply by doing a little price comparison with other vendors. But price isn't always the most important thing when it comes to getting the best deal.
Making large purchases from vendors typically means that you will need to interact with them for quite a while after the sale, depending on service contract lengths. If you have never bought from a particular vendor before, it can be difficult to know how they are to work with. The best price may not matter if they are unable to assist you when you need it or if their dealings prove to be unethical.
If you are looking for a new vendor for your needs, Jeff Muscarella, EVP of IT Spending Management at NPI, suggests that you make sure to ask yourself the following questions before you agree to anything:
1. Is their pricing and rates easy to understand?
2. Are the vendor's representatives helpful and knowledgeable about the products and services they provide?
3. Is the contract transparent?
4. Does the contract offer reasonable protections for both the buyer and seller in the event that something goes wrong?
5. Is the vendor ready and willing to give information about their services and explain that information?
6. Do their terms and pricing allow for future costs to be predicted easily?
7. Is their account management policy clearly outlined and presented in a reasonable way?
8. Are their usage terms and pricing flexible to allow for changes based on demand?
9. Is pricing justified by business cases?
10. Does the vendor follow fair and ethical business practices?
11. Do other clients rate their service, offerings and overall value postively?
If you are unable to answer yes to any of these in regards to a potential vendor, it may be time to seek out an alternative. Sometimes the lowest cost could mean the lowest level of service as well.
Making large purchases from vendors typically means that you will need to interact with them for quite a while after the sale, depending on service contract lengths. If you have never bought from a particular vendor before, it can be difficult to know how they are to work with. The best price may not matter if they are unable to assist you when you need it or if their dealings prove to be unethical.
If you are looking for a new vendor for your needs, Jeff Muscarella, EVP of IT Spending Management at NPI, suggests that you make sure to ask yourself the following questions before you agree to anything:
1. Is their pricing and rates easy to understand?
2. Are the vendor's representatives helpful and knowledgeable about the products and services they provide?
3. Is the contract transparent?
4. Does the contract offer reasonable protections for both the buyer and seller in the event that something goes wrong?
5. Is the vendor ready and willing to give information about their services and explain that information?
6. Do their terms and pricing allow for future costs to be predicted easily?
7. Is their account management policy clearly outlined and presented in a reasonable way?
8. Are their usage terms and pricing flexible to allow for changes based on demand?
9. Is pricing justified by business cases?
10. Does the vendor follow fair and ethical business practices?
11. Do other clients rate their service, offerings and overall value postively?
If you are unable to answer yes to any of these in regards to a potential vendor, it may be time to seek out an alternative. Sometimes the lowest cost could mean the lowest level of service as well.
About the Author:
Joseph B. Kappernick works with companies to help them reduce their logistics and shiupping costs. Please visit NPI to learn more about logistic vendor cost reduction
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