Some purchases we make are based on a process.
Some purchases we make are based on a relationship.
Most purchases we make are based both on a relationship with the seller and some process.
That combination is what we refer to as the Process to Relationship Ratio (see episode 383). In addition, this Ratio applies to different types of purchases in different and unique ways. In this episode, Kevin and Paul apply this concept of the Process to Relationship Ratio to 3 distinct types of purchases:
- How people buy things (personal purchases)
- How businesses buy things (business purchases)
- How the government buy things (government purchases)
They introduced the 80/20 Rule of Government Contracting way back in episode 002. Then they updated this 80/20 Rule in episode 126. Then they overhauled the concept from a “rule” to a continuum in episode 383 (now known as the Process to Relationship Ratio (the PRR)). The next evolution of the PRR is to apply it to these different types to demonstrate how (and why) the PRR applies differently (and uniquely) in government contracting.