M Greenaway said:
But if they lose you as a supplier then they will have to go to the next person who is not so cheap.
Good companies look at long term supplier development, and reducing overall costs - not just price.
But thats another story.
Agreed....
But the operative word here is "good", and as you say - that is another story. I've worked at enough companies where the primary concern is price. Service, reliability, quality, longevity, performance, etc. all mean very little to the people with their hands on the purse strings.
When complaints are made from the shop floor about having to replace the widgets purchased from company ABC three times as often as those made by LMN company - the people making the decisions don't care. All they are interested in is the balance sheet this month or this quarter. If you're really lucky - they are looking at annual figures and you may be able to make a case there - only if you tie in manpower costs to replace the cheaper widgets and the downtime incurred as a result.
Cheers!