Price vs. Value: “Price is what you pay, value is what you get”

Price vs Value

In 2008, Warren Buffet sent a letter to Berkshire Hathaway’s shareholders where he wrote, “Long ago, Ben Graham taught me that – Price is what you pay; value is what you get.” This idea still largely guides decisions into new business investments where the dollar amount of a new purchase should be evaluated against other factors that create value, whether they be financial, emotional, or physical.

Let’s be honest, when we are talking about the price of new technology, rarely does someone see the price and think to themselves, “Wow, that is so much cheaper than I expected it to be.” New technology comes with a price tag, but it can also add extreme value to your organization.

The Price of Integration

There are many different integration options on the market all with various pricing structures, but in general, the price of integration can range from $4,000 – $80,000 or more in the first year. At this price point, sticker shock is common with first-time buyers. 

Naturally, the first question I would ask myself as a buyer would be, “OK, what do I get for that price?” With Commercient SYNC, for far less than $80,000, you will get seamless integration between your ERP and CRM that meets your organization’s exact needs. We SYNC the information you need at a frequency of your choosing using our tried and tested, pre-built integration points. This includes not only the initial installation of the SYNC but also ongoing maintenance and top-of-the-line customer support. This is a white-glove service where all of the integration is managed by Commercient to allow you to focus your time on other critical business activities.

The Value of Integration

As buyers of integration services, we must not only consider the price of integration, but also the added value as a result of it. Commercient SYNC can increase revenue and decrease costs, adding value to your business. So, let’s break it down. 

SYNC to increase revenue 

Commercient customers report seeing an immediate 5% increase in sales, with additional growth in that number over time.[1]  A 5% increase in sales overnight offers instant ROI to help offset the initial sticker shock, and integration can pay for itself within months

SYNC to decrease costs

To delve into this point, we must first establish some common “costs”. We have all heard the popular quote, “Time is money,” where time is related to labor costs and productivity. Other costs to consider are the cost of human error and customer retention. 

Decrease Time – Research shows that integration increases a company’s productivity by up to 40%. [2]  Imagine the added value for your business when you can be 40% more productive. In one day, you can save 192 minutes. Over the course of a week, that’s 960 minutes and over the course of a year, we are talking about 49,920 minutes PER EMPLOYEE! This time can be used for other business activities, saving the company time, and therefore money.

Reduce Human Error While the costs of human error may be difficult to calculate, research from EasyPost Data found that 4.7% of all human entered information has an error. Therefore, companies doing double data entry into both an ERP and CRM system have a possibility of human error in up to 9.4% of the company records.

Imagine, if you will, a distribution company that sends one million packages a year. Assuming they enter shipping addresses into both systems, that’s 94,000 errors made in ship to addresses each year. If these address errors cause a package to be returned, the company needs to then correct the error, which takes time and pays to resend the packages. For the sake of this scenario, imagine it costs $5 to resend each package.  That’s $470,000 each year to reship packages as a result of these errors! With integration from Commercient SYNC, you can cut these costs in half, and have the added benefit of more accurate data.

Customer Retention Costs PWC statistics indicate that customer service and the customer experience are the most important elements of a long-term business relationship, with more than 67% of customers saying that expedited customer service directly impacts their loyalty to a company. Furthermore,  Genesys found that less than 10% of customers aren’t willing to wait for more than five minutes on the phone for information, so it is our responsibility to give employees easy access to the information they need to address any prospect or customer needs. It is paramount to give teams the information they need in a centralized and easy-to-use platform to help them address customer queries in a professional and timely manner. 

While this benefit is immeasurable, there is no doubt that access to information can help teams provide the desired customer experience to drive new sales and retain existing customers. 

Let’s sum it up. It is true that integration costs thousands of dollars, but the price of that integration is very different from its value. SYNC is proven to increase sales, skyrocket employee productivity, improve customer retention, and decrease human error. The value of integration far exceeds the price, and one could even argue that you are losing money by not integrating these critical business systems. 

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