On Apr 16, 2013, at 10:46 PM, Jeff @ SLYN Systems <[email protected]> wrote: >> Do you want to do business with a company that isn't marking their margin up >> as much or one that you know is charging so much more than what their cost >> is on something? >>
As a small business owner, Jeff, you know how long you would last if you slashed your profit on each job to pennies. I have been reading a lot about VALUE in business pricing and I have "found religion" in adjusting my pricing so that I can offer the maximum value to the customer. In practice that is a HUGE subject and means a lot of things, but the way I view it is that I cannot go the extra mile for someone when focused on going back and nickel and dime-ing them to death with every little thing they ask for. I would rather answer the phone and give them the time they need, have the time to fully know what they do so I can make better recommendations to them, and all manner of little things when I am writing them a program that will make them happier and more effective. If my margins were hair-thin I would begrudge them every little thing they ask for and then not be able to focus on their needs because I would be worried about where my next $2 was coming from. I know that I would rather buy from someone who put a lot of effort into making my life better, more productive and more effective. If I have to pay a little more for that, then fine. I would pay a LOT more NOT to have to work on a Windows box all day. I'm glad I only have to pay but a little more, so it is even more valuable to me. It is WAY within my value margin. Evidently, one or two other people feel the same way. I get spam email from those who don't feel as strongly about value! I heard something recently that brought me up short. I was spouting off to another developer about how I my job is to make my clients more efficient. He politely asked me if I didn't mean "effective" instead. I must confess the subtlety of the distinction (further blurred by the homonymity) escaped me at the moment, but I was reading later about some management guru (Deming?) who talked about how "efficiency" is a poor way to approach a manufacturing task. We can always shave a few seconds or pennies off a process [See: Dell] but are we making it BETTER: better quality, better life, better suited for its task, better for the user experience, a better overall VALUE for the buyer? If not, then what has that "efficiency" cost us? John's article earlier that showed the graph of repair complaints and the different phone manufacturers makes this point quite dramatically. Which would you rather buy: cheaper or better overall value? Which would you rather give exemplary service to: customers who would rather have a root canal than switch to a competitor, or someone who would jump in a heartbeat for the next college student that came along charging $5 less than you? j. -- Jonathan Fletcher FileMaker 9/10/11/12 Certified Developer Fletcher Data Consulting [email protected] http://www.fletcherdata.com 502-509-7137 Kentuckiana's FileMaker Developers Group Next meeting: Tuesday, May 28th, noon to 3:30-ish (Special guest!) http://www.kyfmp.com
_______________________________________________ MacGroup mailing list [email protected] http://www.math.louisville.edu/mailman/listinfo/macgroup
