3 warning signs that price is too high

When choosing between two or more different IT systems and consultants to improve your procurement, price will often be one of the parameters you use to reach a final decision.

After all, you must get your money back. And the higher the price, the harder this becomes.

To help you get the best price, we’ve listed the 3 most important factors that can indicate that the price of a service or system is too high.

#1: You don't understand the work the supplier will do for you - when they explain it, it sounds difficult and complex

Analytical IT systems or services can easily seem very complex and difficult to understand. And making either the service or IT system seem complex is a technique some providers use to drive up the price.

However, there are many new, incredibly simple ways to use data to optimize procurement that are easy to explain and that means prices don’t have to be so high.

So, it’s a red flag if a supplier makes things seem very complex. As a starting point, you should always have a basic understanding of what is being done for you and what you get out of it.

#2: The project grows bigger than what your initial needs were

Most IT systems and consultants can help you in a huge variety of ways. Maybe even in ways you didn’t even realize. And when it comes to optimizing your work and business, there should be no limits.

Or should there?

We often find that our customers have had bad experiences with previous projects that looked great but failed. Simply because the project became too complex.

Limiting yourself and getting to the most important things first is the key to success. Only then can you achieve quick, tangible results, shorter implementation time and a lower cost.

So, it’s a warning sign when projects get out of hand. It pushes up the price and can mean you don’t get anything done.

#3: You don't have an overview of what the costs cover

It’s common sense that your supplier should give you a detailed insight into where your money is going.

However, we often hear that this is far from the norm out there. IT suppliers and analytics consultants often lack transparency in their pricing structure, which can be another tactic to drive up the price.