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Key Account Management, 5th Edition by Peter Cheverton

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22

Measuring the value

If you are going to be as clever as the last two chapters will hopefully help you to be, then you had also better be certain to get the right reward for your brilliance. The secret to getting the right reward for a value proposition is not to be found at the negotiating table, it is to be found in knowledge. Know who receives your value. Know what they get from it. Know what they can do with it. Know what ‘price’ they put on it. Know how to measure it, and in their terms.

Most purchasers will concede that value received is more important than spend, so why do they persist with using spend in their analysis and arguments? ‘Because they can’, is a blunt but realistic answer. Can you really expect a busy buyer to measure ...

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