Ending Nigerian FM Industry’s Pricing, Funds Availability Issues Using IPS Framework

Low level of technology usage, poor funding and poor policy implementation on the part of the providers and stakeholders on the client-side have been some of the critical challenges facing sustainable practice of facility management in Nigeria.

On different fora, poor funding issue on the client-side has been discussed. Information has also shown that financial measures that determine performance of buildings as an investment property are less important to the Nigerian building operators. Recently, mixed feelings from the professionals in the industry have once again emphasised the need for striking a balance between pricing and getting adequate funds from the clients.

The arguments have been that FM providers do not always provide insightful issues on facilities to the clients, lack sustainable budget management, execution plan presentation and supply management knowledge. On the client-side, experts believe that businesses are not ready to provide an upfront budget for the management of their facilities.

Insight Pricing Strategy Framework

In the previous analysis, Infoprations has noted that there is a need to generate concrete insights towards the provision of the right solutions. The insights should guide in selecting appropriate solutions not the problems leading to solution choice. Facilities managers will appreciate a company that generates specific knowledge on issues affecting their facilities than a company which gives only inspection report in qualitative terms instead of both qualitative and quantitative ones.

Adequate funds cannot be available when the provider’s pricing strategy is faulty and failed to align with the changing demographics and psychographics of the client. Both individuals and businesses want an accurate and a deep understanding of issues or problems discovered by FM companies on electrical, mechanical and other essential facilities for operational activities.

IPS Framework: How It Works

Nigerian FM companies need to consider Insight Pricing Strategy because getting adequate funds to manage client’s facilities on site is a matter of discerning and visualising specific issues on the facilities, and presentation to the identified users and buyers in the client’s environment. When the users and buyers see the specific corresponding values (CV) that would be captured, getting the agreed funds would not be difficult.