The (temporary) death of premium

We’re in the midst of a fascinating discontinuity in IT purchasing patterns. Even the dot-com crash didn’t cause this kind of disruption. Practically everyone is scrambling to save money immediately, and some organizations are looking at long-term belt-tightening.

The most obvious immediate impact is that buyer tolerance for paying a premium is rapidly diminishing. Quality is suddenly being eyed with greater objectivity, as businesses stop feeling like they need to have “the best” and start actively considering what services and service levels they really need and can cost-justify. It doesn’t matter (enough) if they love their current vendor and feel they’re getting excellent value for the money. It’s about absolute dollar amounts and aligning spend with needs rather than want-to-haves. Risks are being taken in the name of the bottom line.

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Posted on February 6, 2009, in Marketing and tagged . Bookmark the permalink. Leave a comment.

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