You Might Be Overpaying

When was the last time you actually checked if your supplier's pricing is competitive? Most founders set pricing once and never revisit it. Markets change, your supplier costs change, new competitors emerge, and if you're not checking, you might be overpaying, or you might be getting a great deal and not know it. Here's how to measure price competitiveness. The scale: 1 to 5 rating assessed quarterly. 5, significantly below market alternatives. 4, competitive with market. 3, at market rate. 2, slight above the market. 1, significantly above the market. And how to benchmark? Get quotes from 2 to 3 alternative suppliers annually. You have— you don't have to switch. You're gathering market intelligence. Then, what matters beyond unit price? Total cost includes quality, reliability, and terms. A supplier 10% cheaper but 20% less reliable isn't actually cheaper. The negotiation connection. Remember Week 2? Price is just one of the 7 levers. Maybe you negotiate on terms instead of price, but you need to know where you stand. This quarter, get one quote from an alternative supplier just for comparison. You need market data. If you missed Week 2 on negotiation levers, watch it next.