Elon's "Idiot Index" and Why You Should Follow This Concept TODAY! || Supernegotiate

Coming out today at 5 PM!

Cool insight: Musk uses an "Idiot Index" (Actual Term), and he always asked his Procurement managers at SpaceX and Tesla about Idiot indices in their category. Every Procurement manager was required to have their Idiot Indexes updated and on top of their mind always!

The Idiot Index is the difference between the cost of a finished product versus the cost of its basic material! (Hello, should cost modelling/price engineering).

The higher the index, the higher the cost reduction potential! There is absolutely no reason at all why your category managers should not know this about their categories. It will be out of pure laziness, nothing else.

An example of an Idiot Index story is a crane used to lift the Falcon 9, which was bought for $2 million. The idiot index was very high for this component, which was built by SpaceX from scratch for about USD 300k only!

Need more? The price of the Latches for the Space station was USD 1500 each, but they were built for USD 30

Where is your Idiot Index, Procurement Leaders? Now, the consultants will draw this concept up as a fancy project and pitch it to you. Watch out!

The case study on How Elon negotiates comes out today at 5 PM Dubai time!!! So excited about this. Supernegotiate keeps dropping these insane case studies to deliver value for the Procurement community! Follow for more insights!

Watch the case study live here:

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