Sometimes we can't tell if the process we're being offered is reasonable because the information is not out there, it's not something you can go look for online. What do you recommend here? I have seen people talk to their friends and some other company to find out how much they pay, is that appropriate?
top of page
Master Class Forum
bottom of page
One company talking directly to another to compare pricing can be inappropriate, can sometimes contravene confidentiality agreements and are often not actually that useful as the context of the purchase and conditions often drive pricing anyway.
For example, just because you pay $100 for a hotel which company B pays $80 may not be a direct comparison. Company B may well book further in advance, have a different policy, use other hotels in the chain, spend more money on F&B or on conference spend.
In my experience, benchmarking not just pricing but also policies and procurement tactics produces a far more rounded and useful benchmarking exercise. Confidential benchmarking through an intermediary, such as a consultancy or industry body can be a far more effective and valuable exercise.