Can benchmarking help a company if it’s not financially strong?
A company’s ability to leverage better pricing depends on its financial condition. Companies that are struggling financially have little bargaining clout. Although benchmarking has limited utility for companies that are underperforming, it still has value. Benchmarking will tell the company what pricing is competitive for a company in its circumstances. And, it will give the company the information it needs to target better pricing arrangements that “kick in” when turnaround results materialize.
