Is Your Purchase Worth the Risk?
Recently our organization was involved in a sales process with a company that inquired about our solutions. Upon doing some initial discovery, they shared with us that they had made some bad technology decisions in the past. These decisions had a negative operational and financial impact on their growing business. Their business critical data collection and dissemination processes were were highly inefficient, labor intensive, and caused a delay in response to customer and vendor needs. They were looking for technology solutions that would enable them to operate more efficiently. Additionally, they were looking to grow their business without overwhelming their back-office.
After numerous discussions, demos, and more in-depth discovery, we presented a roadmap that provide immediate short term benefits as well as longer term wins with more advanced technologies. The feedback from senior management was very positive in both the direction of the roadmap and functionality of the solutions, which included: supplier onboarding, finance vendor portal, PO dispatch & update, accounts payable automation, workflow and systems integration with their ERP and other line of business systems. We presented a proposal and after some consideration they decided not to move forward. The reason? Cost.
While it’s never a good feeling to not get the deal, the reasons why are generally understood. Sometimes it just wasn’t the right fit; however, there is one reason that leaves a lingering bad feeling, and that is when “cost” is presented the issue because it usually is not. This isn’t to say that budget constraints don’t exist, but there are almost certainly other factors at play.
Example of Cost vs. Investment
If Company A has $100 to solve a problem, and the solution being sold to them costs $150, no matter how great the solution is, Company A cannot purchase it. However, if Company A finds that they do have the $150 funds available, they are better off willingly investing in the solution in spite of the perceived high costs. Unfortunately many companies just can’t get past the cost of the solution itself, while ignoring the cost of not buying it.
This experience is not unique, and it happens more often than it should. We recently did a deal with a company we had talked to a few years back. They initially declined to move forward because of cost. When they came back a few years later, their initial problems had grown, as had the cost to fix it. But now they had the insight to look at the price tag for the business solutions they were implementing not as “costs” but rather an investment.
Conclusion
For those involved in the decision-making process around buying solutions, consider the importance of cost vs. investment. Do your due diligence, understand the solutions available, and understand the inherent cost of not addressing those problems. The price of any given solution may seem high, but the cost of not moving forward may be far greater.
Contact ICG today to schedule a demo of one of our business process solutions. Or, schedule a call to discuss your project or area of concern.