RFPs for Consumers

In the Business-to-Business world, companies will often issue a Request for Proposal (RFP) before starting a particular project. The RFP allows competing suppliers of the company to give their proposed solution to the problems needing resolution for the project. For example, if the company is building a facility, the RFP will go out to contractors with specific instructions on what dimensions the facilities needs to be and possibly what the facility will be used for. The contractor who offers the best solution will win the contract.

All too often, though, companies issuing RFPs focus solely on price. They view their projects as commodities that just about any supplier could handle, so they simply find the lowest price and go with that supplier. The problem is that, when price only is considered, the company often does not arrive at the solution it was looking for. The facility ends up not being conducive to the company's needs. You can always find someone who will do poorer work for a lower price. Price should be the last thing considered.

The same thing happens, though, with us as consumers. We see a similar product offered by two or three different companies and we immediately go with the lower price. We never stop to think whether or not the product bought at the lowest price really meets our needs. When I want a good cup of orange juice, not just any orange juice will do. I must have Simply Orange--which just happens to be the most expensive on the market. But you know what? I don't care. Because, to me, there is no other orange juice.

Is there anything more of a commodity than orange juice? How much more should we shop based on added value rather than price when it comes to products such as cars, TVs, or sofas? You can always find something cheaper that doesn't really do what you want it to. Remember, when we're sending out our RFPs as consumers--when we're shopping similar products or services--price is the last thing to be considered. We should always think first about whether or not the product or service truly solves our problems.