Wednesday, 22 July 2009 17:42

It’s All About Value

When I shop, lowest price is certainly an attractive attribute. But what I’m really looking for is the best value for my money.

Years ago one of our customers was buying an economy grade of tape.  Yes, it cost less than the better brand.  But it also did not adhere to the corrugated boxes as well.  So…those packing and closing the boxes used two strands of tape instead of one for each box.

From the purchasing agent’s perspective, the company was saving money by buying tape for a lower cost.  But from a total procurement cost standpoint, the company was losing money because they were using twice as much tape as they needed to use.

English philosopher, John Ruskin, said it best:

“It is unwise to pay too much, but it’s also unwise to pay too little.

When you pay too much, all you lose is a little money.

But when you pay too little, you stand a chance of losing everything, because the thing you bought is incapable of doing what you bought it to do.

The common law of business balance prohibits paying a little and getting a lot.  It just cannot be done.

So…when you deal with the lowest bidder, it is wise to put a little something aside to take care of the risk that you run.

And if you can do that, you can afford something better.”

We believe that the Heritage Pioneer Corporate Group offers you “something better.”  Our job is to learn about your business; audit your packaging processes and discover the total procurement cost saving opportunities available to you.

Then, we very well may be able to show you how you can actually save money by purchasing a more-expensive roll of tape.

It’s all about value.

David Demeter

President, Heritage Pioneer Corporate Group