Reliability Is the Product in Hotel Supply
In hospitality supply, the cost of a supplier failing is almost always larger than the saving that caused it. Why reliability, not price, is the durable competitive advantage.
Shorter, practical observations from operating inside these businesses.
In hospitality supply, the cost of a supplier failing is almost always larger than the saving that caused it. Why reliability, not price, is the durable competitive advantage.
Interesting markets do not automatically contain good companies. The durable characteristics we look for in an established B2B business, and the ones we have learned to discount.
B2B switching costs can exist without contractual lock-in. Reliability, embedded customer knowledge and technical capability are what make an apparently ordinary supplier hard to displace.
Availability, freight, working capital, specification consistency and supplier failure all sit inside the true cost of a hospitality product. Price is only the most visible part of it.