Competing On Price

clifford.lobo says : Hi All,

This is just one thought which i feel needs to be discussed in general terms. What do most of the salespeople do when the bid gets really hot on pricing and there are some others that are willing to offer the same services at a lesser price, we understnad that we can promote other options such as good and prompt service, faster turnaround time, quick bug checking and fixes, etc. but there is still a vast market that does go around for price huntine...specially in the world of outsourcing to other cheaper destinations. in this case, do we need to really close the deal as 'deal lost' on grounds that the prospect was never meant to be a potential client because of being price conscious and it not in our domain, or do we fight on reduced pricing which can kill margins that we can earn??

Thanks Everyone for your inputs

Clifford Lobo

Bernard says : "You get what you pay for."

Focus on value - not price.

svenkatesh says : I think your question is more pertinent to a discussion on negotiation. It doesnt matter that you are referring to Outsourcing or offshoring or whatever, its just negotiation at the end of the day. I dont believe negotiation works any differently in outsourcing. There are certain things that you want, some that your client wants, and you figure out how to make everyone happy.

Just dont make everyone equally unhappy.

~ Sandilya