Price, Quality and Speed of Delivery – pick any two
When buying a product or service we usually consider price, quality of product or service, and speed of delivery. Rarely can you get all three. Any business that can consistently achieve 2 out of the 3 will be competitive in their industry. Businesses can survive doing just 1 well, however if your point of difference is price alone, this leaves you vulnerable to being undercut.
Examples of Price, Quality and Speed of Delivery – pick any two
McDonalds focus on fast and cheap, but it’s not good (at least nutritionally). Amazon offers quality and at a good price, but it’s not fast. $2 shops are fast and cheap, but the quality is not good. Jetstar are arguably fast and usually cheap, but the service is not good – that is if you value service and/or being on time.
A question – who here wants to be the cheapest? I’d guess most of you don’t? Therefore, you need to provide quality service/products and deliver on time if you wish to be competitive.
BNI isn’t a Bargain Bin environment
At BNI we aren’t focussing on price. We are not looking to be the cheapest, but we are looking to provide a reliable and quality service such that others are comfortable referring us. Remember people want to be referred to a trusted source and in general will be willing to pay a reasonable price if they believe they are receiving a quality referral from a source they trust, i.e. from you.
Value for Money
Most people will be influenced by price, however they will also place a high importance on the belief that the person will provide a reliable, quality service. This will often lead them to go for your recommendation rather than go for the cheapest.
If you or your referral do get a competing, cheaper estimate make sure the product or service being supplied is apples for apples. Second, check the quality and speed of delivery of the product or service is on par with what the member is offering. This can be very hard to judge if you found the other supplier online. Third, allow a margin for the relationship, remembering that referrals lead to trust, goodwill and ultimately more referrals. What margin should you allow? The answer is as long as a piece of string! However, if the estimates are for the same scope of work and are wildly different in price, go back to the member, be honest and get their feedback. They need to know that they might be uncompetitive in their market and that this will make it harder for you to refer them in the future.
Summary
BNI is not meant to be a bargain bin environment. A race to the bottom on price isn’t a good way to do business. But neither should members be wildly more expensive than market value, thinking that other members and the people they refer don’t expect value for money. When comparing prices, carefully consider if you are also getting speed and good quality AND the relationship and trust you have built with the member. If you get a better price, be honest with the member in your chapter. It will preserve the relationship and potentially help the other member’s business.
