Showing posts with label price. Show all posts
Showing posts with label price. Show all posts

Thursday, May 25, 2017

Why Experts Save You Money

Did you ever hear these from clients or prospective clients?
"Your fees are too high!"
"You want how much to do this?"
"I can get a <insert tech solution name> person for $10/hr why do we need you?"

I have heard these, and many others too over the course of my career.

Now let's hear how some others see this issue, these are general references not specific to anyone or anything.

  • Sales advisors tell us it is because we have not sold the client on us and our solution that the price still matters. If they are not sold on using us, price becomes the scapegoat. This is true.
  • Marketing advisors would say our value proposition is not clearly reaching out target market and we should either move down or up, depending on our circumstances and expectations of clients. This is true as well sometimes.
  • Financial people would tell us that they have a budget they can not exceed, which we know is not true because if the CEO, or another executive with power, want something, they get it, no matter the cost. This is true too.
  • Technical people will tell you they can get it done in a day or two. However, they first have to clear their existing project or support items and then involve a few teams of people and plan the change management, etc.. This is true too, except it will not get done until next year, usually.
What is rarely understood, although we do explain this all the time, is your code-monkeys will spend days trying to fix something that an expert sees and can fix in a few minutes or hours. When this is an internal resourced project, it seems, no one cares about time or cost. When it is an external resource, that is another story entirely.

A friend of mine recently spent, per their post, 5 hours on an email configuration issue.After I asked why they didn't ask my help for what I know to be a five minute fix, we then walked through the config and solved it. Even though they knew I have spent over 20 years on messaging systems, they did not ask for help until they had wasted quite some time. ( I am still hoping they used hyperbole and it was really an hour or 2 which is still too long)

Now, if they are the hourly billing type of person they have a dilemma, do they bill for the wasted hours of troubleshooting or part of it or none of it? If they bill by the project, this would not matter because things like this are expected and included in the pricing. It never makes one happy, but on the other hand, you gain valuable knowledge and experience to solve a problem for next time in seconds, and THAT is huge money to be made...when you bill by the project and not hourly. 

Of course, I can't bill for five minutes of work, well I could if they weren't my friend. The bill would be like the famous joke about the guy with the hammer who knew just where to hit the machinery. I could bill anything just to solve the problem, whether it took me five minutes or five seconds. 


Yes, cheaper solution providers exist, but they are not IBM Champions or Microsoft MVPs or Salesforce MVPs or whatever leaders in their respective fields that while we may not have encountered every issue, we are very battle tested and call upon our other friends to help us because that is what experts do in life.

We trust others to help us in return for the help we lend them. This for me is one of the best things about being an IBM Champion and knowing people that are the equivalent across many platforms. No one wants to ask for help, it is seen as a weakness, but once you get over this your world is much better as is all the people you engage with over the years.

If you are an IT manager, price means nothing when the issue is Enterprise important. If you think otherwise, your company will never get ahead of your competition. Work with experts who help make you look better to your boss, not cause your boss to look for replacements for you.

Tuesday, July 24, 2012

Pricing is not Social

It seems of late that a number of companies are very public, very social, very internet and web, yet very private about pricing.

What is it about price that makes companies hide behind their BS captcha's that are the "send us your information and we will get back to you with a quote" type?

On one hand, marketing says we need leads, services says each customer is different we can't possibly price it properly. On the other hand, we as a company want to be open, honest and above board with our customers.

Which are you? Which is it? Naturally there is a difference between a license MSRP and a services need but one might think these companies are safe guarding gold the way they act about their price.

If you worry about price, then you have no concept of the sales process. If you do your job correctly, then price, unless you are WAY OUT THERE, is rarely an issue.

Are you afraid your competition will find out? Hello 1950, what is this the Cold War? Your competition knows what you charge or how you bill, maybe not exactly but roughly.

Numerous examples exist, pick almost any company offering products online, not retail, but even there you get that "price available when in your cart" BS. I know, there are legal reasons to do that but still, that is just lame.

In my view this comes down to a silo mentality versus an open collaborative mentality. The open collaborative side does not worry about letting you know the price because their honesty is their integrity. If price really matters to you above all else, then they probably do not want you as a customer anyway.

The silo company has too many levels of "insert some euphemism" to be open and honest with anyone because in their world of CYA it is all about being safe, sound and hold back something from the customer. Old time sales tactic, make them ask me how much feels so great to me to be in control. Ugh. The reality is the power is not yours, by withholding the price, it is mine by ignoring you entirely.


Could social be leveraged to provide a more fluid pricing, similar to how much a Coke would cost in the winter versus the summer? Yes of course. While that may not be fair in theory, it is happening already, mostly because of analytics and testing of theories based on the raw data you and I provide in credit card receipts and online surfing as well as rewards cards.

Do we notice or care? Perhaps. But if we never knew the price of anything at a store would we still frequent it? Probably not, and your company website is really not any different.