Once again, Michele Flynn of SIREAS teams up with Kate Vitasek, a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration for this insightful and timely Corporate Real Estate Journal article.
While a buying company and service provider often ‘get to yes’ and establish a business agreement, they will frequently face renegotiations. Buyers especially become frustrated — often blaming suppliers for not honoring their original price. Rather than being frustrated, buyers should look in the mirror and say: ‘Did I get what I paid for? And if not — why?’ The primary reason is that the process for establishing pricing between buyers and suppliers has historically been broken.
Download this article, and get information you can put to use immediately to:
- Reassess your approach to pricing a CRE services contract, and know when to use a ‘price’ versus a ‘pricing model’
- Avoid the perverse incentives that arise from commoditization of complex, strategic business relationships
- Move from transaction-based business models to outcome-based or investment-based sourcing