QUESTION
- Eric – if its so competitive then will we lose money?
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ANSWER
The GSA is a competitive environment, yes, but a principled one. The GSA does not want its vendors to lose money. The GSA wants viable, stable, reliable suppliers who earn a profit while delivering appropriate value. The competitive nature of the GSA environment has the effect of helping to remove the “excess” costs of supplies when individual agencies are carrying out their own limited research or coming under the influence of only a few suppliers who don’t bother trying to be competitive.
Also, the GSA does not insist on paying less than anyone else, if that means causing a loss. The GSA wants to ensure that it is being treated at least as well as the company’s current most favoured customer. To the extent that a company decides through its regular commercial trading practices what it can afford, the company determines its profitability with the GSA.
