Race To The Bottom
This happens in the procurement saleProcurement Sale Where the prospect wants to purchase an identified solution and compares suitable vendors/providers to do so. This sale happens late in the buying journey: more than 80% of the selling journey is complete before the prospect engages with vendors. In this situation, sellers are many times left answering the “3 Uglies”: Can you do it? Do you want it? How much? phase where there’s little to no vendor differentiation in the prospect’s brain. Price becomes the deciding factor, and vendors many times get pitted against each other to win via the lowest possible price. Organizations may hope that later this pricing position can be reclaimed (after the initial sale is made, in future sales), but this rarely happens.