DANS Weekly Insights No. 22. The “Cost vs Capability” Paradox: Why Cheap Always Loses in Defence
In commercial markets, price wins.In defence, price almost never wins.This is the paradox most SMEs misunderstand.OEMs do not select suppliers based on who is cheapest.They select based on who can:deliver consistently,document every step,trace every material,guarantee repeatability,withstand audits,survive long-term programs,and scale under pressure.Here’s the data:👉 In several major European OEMs unit price accounts for less than 20% of the supplier selection score.The other 80% is:capabilitycomplianceprocess maturitytraceabilityrisk reductionIf you focus on price, you lose.If you focus on capability, you win.
