Business & Finance
04:09 PM
Stephanie Stahl
Stephanie Stahl
Core System Testing: How to Achieve Success
Oct 06, 2016
Property and Casualty Insurers have been investing in modernizing their core systems to provide fl ...Read More>>

Editor's Note: Build New Sales Relationships

Price versus market share versus business value. Where in this rebounding-but-not-ready-to-be-called-stable economy is the software vendor to place its emphasis? Cut prices, offer discounts, and you might get more market share. But what will that do to your margins? Raise prices without adding value and you might boost revenue. Will you turn customers away?

It's no secret that business-technology managers have had the upper hand lately, getting great deals and discounts that help them stretch their slimmer IT budgets a little further. It's enough to make one CIO I spoke with recently "giddy." But he also acknowledges that things can't stay that way forever.

Price, says Tim Matanovich, a partner at The Market Leaders Group, is the single most powerful driver of margins in many businesses, and increases are worth fighting for as long as you can show customers how they will bring value to a company, be it lowering expenses, raising efficiency, or creating new business opportunities. Customers should expect their vendors to "dollarize the value" for them, but there doesn't seem to be a lot of that going on with some of the customers we've spoken to recently. And, in some cases, when the vendor does offer something in exchange for a higher price, it isn't the kind of bells and whistles the customer is looking for.

Negotiating prices is but one slice of CIO-Vendor Relationships, a subject that's covered in the upcoming issue of Optimize ( Stay tuned for articles by authors Clayton Christensen, Tom Davenport, and others who discuss growth opportunities and ways CIOs can forge better vendor relationships. You'll also find helpful tips on how to demand more accountability from vendors and create better partnerships.

Stephanie Stahl

To discuss this column with other readers, please visit Stephanie Stahl's forum on the Listening Post.

To find out more about Stephanie Stahl, please visit her page on the Listening Post.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.