February 2010 Tip: Apples to Oranges

February 2010 Tip: Apples to Oranges

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Mark Shonka

Mark Shonka Mark Shonka

So often we see RFPs and auctions that are designed to level the playing field with "apples to apples" comparisons. This is particularly challenging for value leaders, as these comparisons are typically done at the lowest common denominator. Rarely is the focus on raising every competitor's game to the level of the value leader.

A client recently told us about a situation he was facing. A customer of his went out to bid after years of working well together. The bid results were telling, as there was a significant difference in the prices between the incumbent and a new competitor. The customer reluctantly told him that they were going to have to make a change, but offered him one last opportunity to lower his price. Our client responded that there was no way he could provide the customer with the quality of support and degree of attention that had been so important to their mutual success at a lower price. How could the competitor, the customer wondered? After looking into it, he found out that the competitor didn't have a staff, and that all of the support would have to come from a call center. This was unacceptable, and the customer decided that the incumbent's staff and support was worth the extra cost.

How did this happen? Some of the bid criteria was more important to the group administering the RFP (price) than other criteria that was more important to the user (support/expertise).

As sales professionals, it is incumbent upon us to make sure that we don't get trapped in apples to apples comparisons that eliminate the value we bring to the table. We have to do our research, find the fit, position our value to the right people (regardless of what the evaluators think) and drive apples to oranges comparisons.

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