August 2017
Intermediate to advanced
248 pages
5h 59m
English
Content preview from Malcolm McDonald on Key Account Management
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Meeting ‘service level agreement’ criteria means nothing if the customer perceives that you only did the bare minimum to avoid contractual penalties.
Price and value
Professional buyers are not just part of the buying DMU, they are usually driving it. Since the 1980s, purchasing professionals have been taught to examine the total cost of ownership (see Table 4.1) and the whole value chain in which they operate. They are interested in buying goods and services that will help their organizations reduce costs, avoid costs, or add value to their offers to their own customers. However, nothing is as simple as it seems.
Table 4.1 Examining the total cost of ownership
|
Total cost of ownership per widget in $ |
Company 1 |
Company 2 |
80 |
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