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Empirical Evidence
September 12, 2008
If you have ever wondered whether the sales world has discipline, take a look at this chart. It is a sterilized diagram based on actual data from one company. Sales people I know tell me it reflects the reality of their world.
A few things should jump out at you:
(1) “Market price” in many categories is actually an average of many disparate transactions.
(2) There is a trend line that confirms–as you might expect–that larger volume customers tend to get a better price.
(3) There are some smaller customers who obtain a better price than their larger brethren.
That latter reality doesn’t just happen out of sheer luck. You can bet that those customers positioned “below the trend line” are there because of superior procurement processes.
(Note: this figure is © Copyright Greybeard Advisors LLC)
Posted by Robert A. Rudzki on September 12, 2008 | Comments (1)
In response to: Empirical Evidence
G-Man commented:
Exceptional chart! It really does put things into perspective. Job well done, Robert! This is the type of information more supply chain managers need to see.