Web site builder - Chapter 12: Procuring Goods and Services 253 If
Chapter 12: Procuring Goods and Services 253 If your selection of a vendor is based solely on a weighting system, then the testing system garnering the highest numeric rating would be the automatic selection. But that isn t usually the case. Sometimes other factors play into a selection, but using a weighted screening system can provide valuable input into the ability of the system being evaluated to do what you need it to do. Negotiating for the Best Solution You ve considered the market conditions, used an elaborate or not screening system that incorporated a well thought out weighting system, and selected a winner from all the vendors who came begging for your attention and business. That s the end of it, right? Not hardly. Now you have to negotiate the final contract and get the ball rolling on the actual implementation of the system. What? You thought that after the evaluation process was done, and the vendor was selected, that you could just sign the contracts and move on? Well, think again. You can t just take the vendor s offer at face value, unless you want to risk leaving money on the table and setting yourself up for some substantial heartache when the fine print in the vendor contract kicks in. Now is when the real negotiation begins, starting with the price of the system. Everything else remember everything is negotiable comes later. Starting with price When you requested a proposal from vendors, you may have specified that you wanted their best and final price for the products they were offering. And, of course, when the proposals came in, vendors said that the offer was the vendor s best and final price. Yeah, right. That might have happened once, but nobody in the history of the planet remembers it. As you know, because you develop software, there s a substantial profit margin in software after it s released and matures. That best and final price you were offered is so heavy on profit that it wouldn t float if it was loaded on a supertanker. You always have room to negotiate pricing for a software product. Also know that every component offered in the vendor s bid has a monetary value attached to it. Even if the vendor won t budge on the actual price, you can negotiate extended warranties, additional services, or other items that add value to the deal. The big margin is in the actual software, and a vendor
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