Do you have a Price Filter?

I just got back from my local coffeeshop, where I paid $2.15 for a 16oz decaf americano. While I was there, I had asked about the bags of espresso they had for sale. It was the same decaf coffee they used for my americano (Attibassi Espresso Italiano decaffeinated), but I balked at paying $15 for the 250g bag. While walking back to my office with 16oz coffee in hand, I realized that I just paid $2.15 for 2 Tablespoons of that ground coffee. There are 17.5 tablespoons to a 250g bag (I know this from baking). I had a filter on when it came to the cost of a pkg of ground coffee. My expectations were that ground coffee should be no more than $7-$8, due to my experience with ground coffee (I have always equated ground coffee to cheap stuff my parents would buy). Yet I was willing to pay $2.15 for the coffee (most of which was hot water and only 2TB of the coffee).

This is one of those human traits we need to overcome when evaluating proposals objectively. Purchasers are trained in this, albeit we're not perfect (see coffee example above!). However, we usually chair evaluation teams of 'end-users' or 'subject-matter experts' who are not trained in removing their filters. Many of these clients have experience and expectations on the price something should cost. If a different approach, better quality comes along with a higher price tag, their immediate reaction may be "that's too expensive". I've even had a lower price than expected come in and someone tried to argue "they can't be planning to do everything we're asking to be this cheap". It takes a bit of discussion to open their minds to the fact the price could differ from their expectation due to a 'better' approach, or 'improved' quality proposed. To overcome this filter, some larger RFPs will use a two-envelope system for proposals - evaluators will not see price until AFTER they have evaluated everything else - it removes the filter. A further step, used successfully, is a blind envelope system (or 3-envelope system), where the bidders are requested to submit proposals with one envelope for price, one envelope with all identification (names/information specific to the organization) left out and one envelope with their corporate info. The 'generic' envelope is evaluated first, this way no-one can 'anticipate' the price with a filter they may have on someone's 'reputation' for being expensive/inexpensive.

I don't want people to think evaluators are biased. Many truly are looking to do a fair, open process to get the best solution/best value for their organization, but we need to recognize human nature plays a part. No matter how objective I, as a procurement advisor, can make the criteria for someone's project, there are also methods/means used to eliminate some of the human nature biases in the process...