Had this conversation earlier this week:
Scarcity mindset looks at cost over the value created for a service or product purchased.
An abundance mindset looks at value vs cost and the price is usually last in the thought process, not first!
In my past corporate career I held roles in engineering, operations management, and international supply chain management.
During my run in supply chain management I managed a $56MM portfolio of suppliers across several geographical areas- China, Europe, U.S, Mexico, and more.. We were a large corporation, so we normally received best prices- correct?? You would think we did, right? Let me break it down the cliff notes version.. The company I worked for was ~11.9Billion in revenue my last yr there.
When we manufactured our product we were NOT the cheapest in the elevator industry (we were a service provider), we were also NOT the cheapest in the elevator services- repair business. We made a killing on our repair business! WHY would customers pay us MORE?
We had the best talent in the industry, we paid our technicians well, we had capabilities to ship overnight any component to get the customer back up and running, in our factories we manufactured complete elevators with components that me and a team of supply chain managers managed and purchased, we also manufactured majority of our own components in our factories across the 🌎
Now, on to the supply base… our role was to negotiate BEST pricing, so we could manufacture at a better price point than our competitors. For me, it was never really about the PRICE. I would look at the suppliers as PARTNERS! How much VALUE can they add to our company beyond supplying parts, are they an expert in manufacturing, are they experts in managing inventory, are they experts in R&D, are they experts in capacity studies, etc… I would look for suppliers that could Partner with us and help our operations run better, I didn’t want JUST their supply base! I wanted their minds, their talents, and their by in on why we should do business together!
This is why you should not just stop at price and get stuck on “crying” to your service provider about pricing. Hell go be your own service provider and see how hard it is at times, obstacles that you will have to figure out, changing your schedule on the fly, etc.. chances are if you are CRYING over the price, you wouldn’t make it as your own service provider!
Live in ABUNDANCE, think BIGGER, and don’t STOP!
Pulling for YOU 👊
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