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As a CFO is Price More Important than Support and Service?

Answers

Sara Voight
Title: Controller
Company: Critical Signal Technologies, Inc
(Controller, Critical Signal Technologies, Inc) |

I think that is dependant on what the service is. When I look at companies to handle my registered agent status in multiple states, I look more at the price of the service since I know it is required but I will not be interacting with them much. For services where I know I will be relying more on support, I view price last after researching the item and following up with current users. With multiple quotes, I can also use the data to negotiate with a stronger support company when I feel their strength is worth some additional money.

Red flags go up when any of my RFQ's come in radically higher (or lower) than the rest of the submissions.

Topic Expert
Richard Claiborn
Title: CFO
Company: In Transition
(CFO, In Transition) |

The price has to cover service and support. If you need to offer them and don't get paid for it, either directly or indirectly, then your business will not survive.

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

If the actual price for the service provided does not offer the required value, you more than likely will replace the vendor at the first opportunity. Price and service are components of value, not interchangeable.

Brian Aubol
Title: Corporate Finance Specialist
Company: Registered Agent Solutions, Inc.
(Corporate Finance Specialist, Registered Agent Solutions, Inc.) |

Support and Service have to come first, and then you can negotiate price to your best ability. This goes for all products and services. "If you buy the best, you only cry once." Regis is correct when he states that price and service are components of value. As for registered agent services, as Sara Voight mentions, it's terrible to see prices of some service companies continuously climbing when the cost of providing these services have actually fallen with new technologies.

Trish Meyer
Title: VP of Finance
Company: GMI Holdings
(VP of Finance, GMI Holdings) |

Firstly, the actual service needs to add value and must solve a problem. Second comes the support. Especially if it is something used by several employees. Last comes the price in my mind. I have made the mistake in the past of going for price first and paid more in the long run with a lot of headaches along the way. Having a dedicated support contact for the service goes a long way!

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