Are telling you to change your priorities
The world around us keeps changing. Buyers seem perpetually confused about how to source the best suppliers. Once they latch on to someone that “gets it”, they stick with them. Are you that person? Are you that company?
Successful companies never compromise on these eight transactional priorities:
Define Outcomes
Whoever controls the narrative on the desired outcome of the event, is in charge. Jobs are won or lost and succeed or fail based on the gaps in understanding about expectations and the journey that actually ensues. When the buyer misunderstands, chaos follows. When the supplier is confused, our industry suffers.
Demonstrate Value
Value is never self-evident. It is hiding inside the buyer’s (and agent’s) mind. What is important? You have to ask them. Then, you the supplier, must demonstrate that you understand. Focus on the journey, not the scope of work, which is going to change the moment you decide that it is settled.
Understand Cost and Margins
Price is subject circumstances. Specifically, cost varies with demand and expectations. Margin varies with risk and complexity. The only thing you actually control is the price, but it derives from two unpredictable variables. The idea that a price is something you can determine once and re-use later is what destroys small companies.
Know Your Buyer (and their Agents)
Institutions and businesses exchange money for goods and services, but it is people that decide who does business together. If the person that defined the outcome isn’t sitting in front of you willing to make changes in their “ask”, then you are talking to an agent. How you demonstrate value and explain prices varies dramatically depending on how close you are to the real decision-maker.
Source the BEST People
The first question in selecting a key contractor or an employee is, “Do they know more than I do?” The answer should be, emphatically, yes. If they don’t, then they merely fill a slot, which means no value will be created. The second question is. “Are they available?” Finally, we can ask what they cost. In.that.order.
Keep Your Overhead to a Minimum
Having full time staff, a big warehouse, and shiny trucks makes your life easier. However, that convenience can cost more than the value created. The better you are at outsourcing, the less you will rely on easy “off-the-shelf” solutions. Overhead is the last resort of the uncreative.
Do Exactly What you Said You Would Do (and maybe a bit more)
This should go without saying, but if you are not willing to lose money to save the day, then you are in the wrong industry. When the cost of the solution exceeds your imagination, the show will fail. When a buyer rejects your value proposition, maybe its your commitment that is in question?
Validate Outcomes, Value, and Margins
How do you know if you did the right things? Or, the wrong things? Feedback is subjective.
Outcomes are measurable. Did you do as you said you would?
Value is perceivable. Was the customer happy with what they decided to pay?
Margins are truth. Did you start with the right cost? Did you apply the correct margin? Did you anticipate risk, intangibles, and market trends? Numbers don’t lie.
Repeat
A business is the sum of resources designed to deliver success on every transaction. When we add resources and overhead in anticipation of future demand, we are gambling. We bet that the fixed costs will add up to less than the cost of on-demand procurement, while delivering the same or better quality.
Is your quality of service sustainable? Can you maintain annual profitability without compromising on outcomes? Only companies that understand and master these eight priorities are ready to grow and expand.
Tom Stimson MBA
President, Stimson Group LLC
March 2026
