{"id":2472,"date":"2026-08-17T09:29:33","date_gmt":"2026-08-17T09:29:33","guid":{"rendered":"https:\/\/dans.ltd\/?p=2472"},"modified":"2026-08-17T09:30:57","modified_gmt":"2026-08-17T09:30:57","slug":"dans-weekly-insights-no-22-the-cost-vs-capability-paradox-why-cheap-always-loses-in-defence","status":"publish","type":"post","link":"https:\/\/dans.ltd\/de\/dans-weekly-insights-no-22-the-cost-vs-capability-paradox-why-cheap-always-loses-in-defence\/","title":{"rendered":"DANS Weekly Insights No. 22. The \u201cCost vs Capability\u201d Paradox: Why Cheap Always Loses in Defence"},"content":{"rendered":"<div class='booster-block booster-read-block'><\/div>\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2472\" class=\"elementor elementor-2472\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3cdbc23 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3cdbc23\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a6fb705\" data-id=\"a6fb705\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4771618 elementor-widget elementor-widget-text-editor\" data-id=\"4771618\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\"><strong>In commercial markets, price wins.<\/strong><strong><br \/>In defence, price almost never wins.<\/strong><\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">This is the paradox most SMEs misunderstand.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">OEMs do <em>not<\/em> select suppliers based on who is cheapest.<\/span><br \/><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">They select based on who can:<\/span><\/p><ul style=\"text-align: justify;\"><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">deliver consistently,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">document every step,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">trace every material,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">guarantee repeatability,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">withstand audits,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">survive long-term programs,<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">and scale under pressure.<\/span><\/li><\/ul><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">Here\u2019s the data:<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">\ud83d\udc49 In several major European OEMs <strong>unit price accounts for less than 20% of the supplier selection score<\/strong><strong>.<\/strong><\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">The other 80% is:<\/span><\/p><ul style=\"text-align: justify;\"><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">capability<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">compliance<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">process maturity<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">traceability<\/span><\/li><li><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">risk reduction<\/span><\/li><\/ul><p style=\"text-align: justify;\"><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">If you focus on price, you lose.<\/span><br \/><span style=\"font-size: 14pt; font-family: helvetica, arial, sans-serif;\">If you focus on capability, you win.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>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\u2019s the data: \ud83d\udc49 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-2472","post","type-post","status-publish","format-standard","hentry","category-media"],"_links":{"self":[{"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/posts\/2472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/comments?post=2472"}],"version-history":[{"count":4,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/posts\/2472\/revisions"}],"predecessor-version":[{"id":2476,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/posts\/2472\/revisions\/2476"}],"wp:attachment":[{"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/media?parent=2472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/categories?post=2472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dans.ltd\/de\/wp-json\/wp\/v2\/tags?post=2472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}