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Today, we will answer a question that sometimes isn’t asked but should be. The question is, “What Are The Dangers Of Focusing Too Much On Price?” Of course, we focus on price in many different transactions, but what about dealing with a legal business transaction?

In today’s COVID-19 world, an eye-opening article detailed a potential danger when trying to get the lowest price. At the time of the writing, the European Union had a shortage of doses available, keeping the vaccination efforts from really taking off. Only a tiny portion of the general public in the European Union will receive a shot by the end of the summer.

One of the main reasons this is occuring was the European Union’s instance of getting the best price. They have a reputation for negotiating lower prices. Negotiations like this can work to their benefit in trade deals, but it had the opposite effect on the vaccination efforts.

Because of the European Union’s negotiation length, they were last in line to get the dose. Their place in line was because other countries could pay a regular price, and pharmaceutical companies prioritized those nations in vaccine shipments. In addition, by looking for the lowest price with manufacture, they chose to rely on untested pharmaceutical companies. Those companies didn’t have a solid manufacturing partner or well-tested technology. By looking for the best deal, they overlooked that the partners chosen couldn’t deliver on their promises.

So, how does all this relate to business legal negotiations? If your company is in a legal dispute, it drains resources, just like the COVID lockdown did. Lawsuits focus the company away from their central purpose to deal with the suit or disputed claim. It would be foolish to negotiate away your future by trying to find the cheapest legal solution.

At Sierra Crest Business Law Group, we love to answer interesting questions. If you have any questions about how to factor price into negotiations and other considerations that are important for
you, we’re certainly happy to have that conversation. We can help orient you to show you where you are on the map and where you will need to go to get to where you want to be. Price is part of that, but there are a lot of other factors. If you’re hiking in the mountains, you got to consider where the trail is, but you also have to consider the elevation and terrain. We’ll help you do that. Give us a call at 775-448-6070