Cost Modelling is Fundamental to Smart Buying
November 15, 2017—
Critical to smart buying is the ability to determine whether the cost of acquiring certain goods or services is, by far, surpassed by the benefits that can be gained.
It is also fair to say that a good understanding of what drives the cost of goods or services is key to the buyer’s ability to maximizing the value that can be achieved from a purchasing transaction, where value is defined as the difference between the benefits gained and the cost of acquisition.
Cost modelling provides the framework for understanding the true cost of a product or service and is a vital tool to get the best outcome from a negotiation.