We've been doing small business websites, which used to be bread and butter work, especially when we were sole traders. But recently we've been making the decision to throw back some of these jobs, and give more of an advice role in the customer producing their own websites.
More often than not, the customer doesn't appreciate the work involved in doing something like set up a simple website, with contacts page, and allowing to change content on a few pages. Perhaps adding a gallery for uploading previous work.
By the time we tie down branding and logo, ease of use, navigation, and guiding the users eyes around the pages. Then building the structure and the admin side CMS, and making it SEO friendly (W3 standards, and all the Google toys set up) your looking at minimum 3 days work so over a grand and creeping up to 6K.
The customers response might be:
"Ooooph I only want a 6 page website, I was thinking more along the lines of 3 or 400 sheets?"
So is the market coming to an end for this sized customer?
We used to always take work on, and thought as long as work was coming our way then we couldn't fail.
However, this end of the market, the small business that wants an online presence, or has had a simple electronic business card type website for years and wants a little more now, is turning into a non profit minimum wage job. If another design house does manage to sell the solution at a higher price then they take the profit and pass the technical stuff to us. Either way we get squeezed to produce the mechanics. Looking to the future, it becomes hard to see how the business is going to boom. The customers are seeing more and more automatic tools for creating templated sites, and wonder why a tailoring company charges so much. They are right to feel this too, the tools out there to get yourself a web presence or online shop are now vast, and it might be better for customers to take a little time and do it themselves, or employ a student at a cheaper rate to set up the CMS packages for them.
We are now actively turning them away and giving more of an advice service to get them to use tools such as Google Apps.
We did ask, should we be developing more of a generic CMS system ourselves that allows us to quickly knock out a website for someone, but over the last 10 years I have known at least 2 other businesses that have wanted this. The theory is back 15 years ago when I was doing my Computer Science Degree, the new buzzword was Object Oriented Programming. It was this great new thing utilising Borland C++, and was the wave of the future. It was going to allow us to create objects and eventually these objects can all be pulled off of the shelf and plugged into each other making systems development easier.
Well that never really went according to plan, the way the university envisaged it, although we do write code for reuse ability, chances are when we come to reuse it, there is some new way, or new technology we have to consider and so rewrite or even recreate the object.
But like I say other companies have tried and failed at CMS systems, and when I see the successful ones (Kentico, Sharepoint, or Commonspot) then to accommodate for all of the individual things a customer might want, these have turned into a programming language in their own right that could easily have a training course purely for themselves, so have moved away from the easy off the shelf packages they first tried to be.
So where is the money now at in IT?
We are skilled, I can get a computer to do anything, so if I try and leave the minimum wage market of programming websites for other Small Businesses, then where can I go to grab the big bucks?
Creating our own products of interest to a market and getting funding.
Recently I was on a stand at the Thames Gateway Forum (ExCel centre), and competing with Gordon Brown and Ken Livingston's speeches to get my presentation across. I got loads of interest. I used to attend early morning BMI meetings and have a coffee and see how many business cards I can pass out in an hour. I hear of stories in these circles of other people in my position who secured x.x million pounds from some organisation to build something that I can do for a quarter of the price (which I have already proved by taking the audio visual system from Portcullis house, and rewriting it for a fraction of the cost for the Houses of Parliament).
How does anybody else ramp up their business to keep getting those large clients?
I see two answers, either we have to bite the bullet and employ a salesman. I know, last time I said I didn't want to go down that route, but I am now starting to see they do have a value to a team, in that they get right to the person holding the purse strings, and evaluate how much they can charge usually quite successfully. Then we can target the bigger businesses that have money to spend. Secondly we produce a product ourselves and resell it. Now that is a hard one. We have a few ideas that I have mentioned in previous blogs like the Wiimote for PC applications, and more recently we chased the idea of a Virtual Reality cricket trainer, but after research saw that we were a couple of years too late with that idea. :)
I believe we are a lot more technical than just a company that bangs out standard website templates, and we now need to consciously move away from that reputation and plant ourselves firmly in the market that can engineer full systems. We have come close to some of these dream jobs, like once I almost got to travel to Spain to kit out a posh yacht with full on automation. Once again I am wondering if we might be losing out on this slice of the cake due to underpricing ourselves which in turn undersells our skills.
I am not a cold caller, so am at present trying a bit of networking on UK forums to see what might come of it, but if any of you successful entrepreneurs out there want to give me some advice then please leave a comment.
Anyway, rant / findings over for now.
Lets try a little marketing and see what I can drum up.
Cheers for reading,
Lindsay.
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Wednesday, 16 January 2008
Monday, 1 October 2007
My dad said grow up stupid. So I did... Duuurr :)
Well we are growing at a good pace now, and I can see that there are some things you have to really make sure you keep a control of as a company before they get out of hand.
I guess you have to decide how large you want to get as a company and where your 5 year plan will take you.
Do you want an office with permanent employees?
Do you want to spend all your time on the golf course making the deals?
Do you want to remain a code monkey?
It started off that we, like most other small companies didn’t want to refuse any work, because why would you turn down business if it is coming in?
It then gets to the stage where you find out you are spending a good 50% of your time on the phone and in meetings procuring new work, and a lot of the remaining time project leading teams to carry out the work on jobs you have mapped out.
It then dawns on you that you are now spending less and less time doing the thing you love, using tools to solve problems. I love sitting down at a machine, and I have a language/technology to use to get a PC to do something by the end of the day. I treat it like a puzzle every day, and that is a love of my work and the reason that I can spend my working life sitting in front of a monitor. I am not a person that wants to be spending my time running an office and getting the deals.
There are some people who are brilliant at schmoozing, and I am happy to leave procurement to them. As long as we don’t get to the company situation where we have a salesman who doesn’t have a clue about the technology and undersells something that they blagged.
So now where do we go from here? We have to be careful in that me and my Business partner Dave both keep control of the work that comes in, and that we are the ones that sets up the skeleton structures, and plan and runs the teams to solve the systems. This means that we keep the control over how problems are being solved. I guess we now have to look at our company size and say we now have the opportunity to grow very quickly, and a very important part of that growth is keeping control and not letting everything spiral.
We now have a very nice bank of repeat customers, and the word of mouth reputation is spreading exponentially. That is allowing us the freedom to pick and choose the type of extra work that we go for, and we are even getting to the stage now where we may be able to think about writing some of our own products to launch out to the mass market place and see how our ideas fair. That is where I think our BIG money lies.
As one fine philosopher once said:
This time next year Rodney, we'll be millionaires.
Aaah well, back to work. I have a doozy of a problem to solve and a smile on my face.
I guess you have to decide how large you want to get as a company and where your 5 year plan will take you.
Do you want an office with permanent employees?
Do you want to spend all your time on the golf course making the deals?
Do you want to remain a code monkey?
It started off that we, like most other small companies didn’t want to refuse any work, because why would you turn down business if it is coming in?
It then gets to the stage where you find out you are spending a good 50% of your time on the phone and in meetings procuring new work, and a lot of the remaining time project leading teams to carry out the work on jobs you have mapped out.
It then dawns on you that you are now spending less and less time doing the thing you love, using tools to solve problems. I love sitting down at a machine, and I have a language/technology to use to get a PC to do something by the end of the day. I treat it like a puzzle every day, and that is a love of my work and the reason that I can spend my working life sitting in front of a monitor. I am not a person that wants to be spending my time running an office and getting the deals.
There are some people who are brilliant at schmoozing, and I am happy to leave procurement to them. As long as we don’t get to the company situation where we have a salesman who doesn’t have a clue about the technology and undersells something that they blagged.
So now where do we go from here? We have to be careful in that me and my Business partner Dave both keep control of the work that comes in, and that we are the ones that sets up the skeleton structures, and plan and runs the teams to solve the systems. This means that we keep the control over how problems are being solved. I guess we now have to look at our company size and say we now have the opportunity to grow very quickly, and a very important part of that growth is keeping control and not letting everything spiral.
We now have a very nice bank of repeat customers, and the word of mouth reputation is spreading exponentially. That is allowing us the freedom to pick and choose the type of extra work that we go for, and we are even getting to the stage now where we may be able to think about writing some of our own products to launch out to the mass market place and see how our ideas fair. That is where I think our BIG money lies.
As one fine philosopher once said:
This time next year Rodney, we'll be millionaires.
Aaah well, back to work. I have a doozy of a problem to solve and a smile on my face.
Friday, 15 June 2007
Business is booming
Well the IT industry seems to have taken off recently.
I was getting right into the Virtual Reality research and where it could go when all of a sudden tons of work came in.
I have been carrying on with search engine optimisation for a customer, which I may as well mention here:
Ahem! (advert coming up.)
For all your CIM, Marketing qualifications, and Chartered Institute of Marketing courses, we offer Distance learning to get your diploma. Check out our corporate deals.
Anyway now thats out of the way, yeah I have also been having to take on employees. That is a change. All of a sudden I am trying to be my usual recluse code monkey, and now I am having to be in contact to get some others up to speed with us.
It's going great and after a few late nights and strong coffees I think we have come through it fairly unscathed.
We are still writing software applications and most of our customers are still based in the Anglia region, but we seem to be moving a lot more onto flash work now and intricate systems that uses a pretty front end.
Anyway I will try and keep a post in here about how the business is changing now. I am having to handle people, but for now I had best get back to it.
H
I was getting right into the Virtual Reality research and where it could go when all of a sudden tons of work came in.
I have been carrying on with search engine optimisation for a customer, which I may as well mention here:
Ahem! (advert coming up.)
For all your CIM, Marketing qualifications, and Chartered Institute of Marketing courses, we offer Distance learning to get your diploma. Check out our corporate deals.
Anyway now thats out of the way, yeah I have also been having to take on employees. That is a change. All of a sudden I am trying to be my usual recluse code monkey, and now I am having to be in contact to get some others up to speed with us.
It's going great and after a few late nights and strong coffees I think we have come through it fairly unscathed.
We are still writing software applications and most of our customers are still based in the Anglia region, but we seem to be moving a lot more onto flash work now and intricate systems that uses a pretty front end.
Anyway I will try and keep a post in here about how the business is changing now. I am having to handle people, but for now I had best get back to it.
H
Monday, 12 March 2007
altFusion is now running on other domain names.
We have recently registered some other domain names.
I know that this doesn’t help out with Search Engine Optimisation for our main Cambridge and Peterborough Software IT website, but it does stop anybody else buying up the domains and hurting our web presence. Each domain also has their own page ranking for the pages inside them, and although I am not actively going to promote the other domains, they might bring more traffic in just by being there and allowing indexing over time.
Domains we have now registered and a brief description about that type of domain top level extension are:
1/
http://www.altfusion.biz/ - A general online business extension and altFusion is an IT online business.
2/
http://www.altfusion.net/ - A general extension to say we are on the Internet.
3/
http://www.altfusion.org/ - A worldwide organisation domain. As long as it isn’t postfixed with the uk subdomain then there aren’t restrictions on it like it having to be a charity organisation.
4/
http://www.altfusion.eu/ - A European Union domain extension, that suggests that altFusion is a European company that offers IT solutions and applications for the whole of Europe as well as the UK.
5/
http://www.altfusion.info/ - This is for an information website, and along with this blog I believe that altFusion can always be welcome to offer advice to somebody as well as to provide a full IT system or software application.
We dont see any need to register any other domain names at the moment.
Just as a side note, I have already mentioned that we have got a fun website filled with Games and Gadgets and Widgets and things to experiment with here.
I know that this doesn’t help out with Search Engine Optimisation for our main Cambridge and Peterborough Software IT website, but it does stop anybody else buying up the domains and hurting our web presence. Each domain also has their own page ranking for the pages inside them, and although I am not actively going to promote the other domains, they might bring more traffic in just by being there and allowing indexing over time.
Domains we have now registered and a brief description about that type of domain top level extension are:
1/
http://www.altfusion.biz/ - A general online business extension and altFusion is an IT online business.
2/
http://www.altfusion.net/ - A general extension to say we are on the Internet.
3/
http://www.altfusion.org/ - A worldwide organisation domain. As long as it isn’t postfixed with the uk subdomain then there aren’t restrictions on it like it having to be a charity organisation.
4/
http://www.altfusion.eu/ - A European Union domain extension, that suggests that altFusion is a European company that offers IT solutions and applications for the whole of Europe as well as the UK.
5/
http://www.altfusion.info/ - This is for an information website, and along with this blog I believe that altFusion can always be welcome to offer advice to somebody as well as to provide a full IT system or software application.
We dont see any need to register any other domain names at the moment.
Just as a side note, I have already mentioned that we have got a fun website filled with Games and Gadgets and Widgets and things to experiment with here.
Monday, 5 March 2007
Google Apps.
It was brought to my attention recently that Google Apps had re-branded and are now trying out different tools to help people with their web presence.
We wanted to register a new domain to have a play around with this, so I joined up and registered a test domain here:
Cambridge and Peterborough software developers test partner website.
So I signed up at the Google Apps pages, and registered the domain.
From the front menu there is a bit of confusion with 2 categories of pages to sort out. There is a link to sort out the start pages, and there is a link to sort out the web pages.
I didn’t know the difference, so I thought I would sort out the start pages seeing as it makes sense to start at the start.
What happened then was I sorted out the content, and put on a couple of blogs, a weather report, and a calendar.
I then waited to see this start page turn up at the http://www.altfuzion.com and after about a week, it still never turned up. It always stayed at start.altfuzion.com
So I went back and re visited the account and saw that the webpages were still blank even though the start page was set up. I then set up the webpages which at the moment is a title and a piece of text just introducing what I am trying to do with the Google Apps account.
That now does come up at the intended application URL.
Because I now have an ASP.NET (dot net) website that I don’t want to break so I will leave that alone, and I can now use www.altfuzion.com as a blank canvas to try out any number of tools and technologies.
I have found so far that Google states they do not give any preferential treatment to pages or websites that are held and created on Google Page Creator.
It just has the same precedence as any other website on the internet.
It should be worth mentioning: We have registered our test domain http://www.altfuzion.com to run through googlepages, although with my googlepages account I can actually register 4 domains in total to have other domains to experiment with. These domains are all within the http://########.googlepages.com area however so I don’t really see a need to explore this further, I will be sticking with http://www.altfuzion.com which points to http://www.altfuzion.com-a.googlepages.com/ only for my experiments.
I am now looking into Google Gadgets and Widgets to see what it is about, and there seems to be a wealth of Widgets that have been written for google pages.
Some of these are free and some are costly, but all are supposedly easy to install through my main Google Page Creator.
I am going to have a test page to hold gadgets and widgets that I will make public.
You can view my google widgets test page here.
Questions I have to be answered are:
Can I make a robots.txt and sitemap.XML ?
It does state there is 100MB of storage space. Can I upload pages directly to my space, or do I have to go through their interface.
If I can upload pages, can I upload aspx (ASP.NET) pages, or is there any kind of server side technology that I can utilize?
Is there any database technology that I can utilize on their storage space?
We wanted to register a new domain to have a play around with this, so I joined up and registered a test domain here:
Cambridge and Peterborough software developers test partner website.
So I signed up at the Google Apps pages, and registered the domain.
From the front menu there is a bit of confusion with 2 categories of pages to sort out. There is a link to sort out the start pages, and there is a link to sort out the web pages.
I didn’t know the difference, so I thought I would sort out the start pages seeing as it makes sense to start at the start.
What happened then was I sorted out the content, and put on a couple of blogs, a weather report, and a calendar.
I then waited to see this start page turn up at the http://www.altfuzion.com and after about a week, it still never turned up. It always stayed at start.altfuzion.com
So I went back and re visited the account and saw that the webpages were still blank even though the start page was set up. I then set up the webpages which at the moment is a title and a piece of text just introducing what I am trying to do with the Google Apps account.
That now does come up at the intended application URL.
Because I now have an ASP.NET (dot net) website that I don’t want to break so I will leave that alone, and I can now use www.altfuzion.com as a blank canvas to try out any number of tools and technologies.
I have found so far that Google states they do not give any preferential treatment to pages or websites that are held and created on Google Page Creator.
It just has the same precedence as any other website on the internet.
It should be worth mentioning: We have registered our test domain http://www.altfuzion.com to run through googlepages, although with my googlepages account I can actually register 4 domains in total to have other domains to experiment with. These domains are all within the http://########.googlepages.com area however so I don’t really see a need to explore this further, I will be sticking with http://www.altfuzion.com which points to http://www.altfuzion.com-a.googlepages.com/ only for my experiments.
I am now looking into Google Gadgets and Widgets to see what it is about, and there seems to be a wealth of Widgets that have been written for google pages.
Some of these are free and some are costly, but all are supposedly easy to install through my main Google Page Creator.
I am going to have a test page to hold gadgets and widgets that I will make public.
You can view my google widgets test page here.
Questions I have to be answered are:
Can I make a robots.txt and sitemap.XML ?
It does state there is 100MB of storage space. Can I upload pages directly to my space, or do I have to go through their interface.
If I can upload pages, can I upload aspx (ASP.NET) pages, or is there any kind of server side technology that I can utilize?
Is there any database technology that I can utilize on their storage space?
Friday, 2 March 2007
Problems with small software house businesses trying to get those larger contracts.
I don’t want this post to be a rant, because it is a serious question that I want to explore and invite comments on, to really try and find an answer to this problem.
The main underlying question is:
Why should we have to charge £1000+ a day to get the big contracts?
It's not a bad thing I guess if you can keep getting those contracts, but consider the following scenario:
Buying a car.
When buying a car you don’t go for the cheapest because you perhaps want a little bit of luxury (say an air bag and an alarm).
You wouldn’t buy the most expensive car because you know that in this industry you can sometimes pay a lot for essentially the badge on the bonnet.
So you would read reviews, and take test drives and weigh it up and try and find something in the middle that offers good value for money.
So there is a massive difference between the car (and other) industry and the software industry that I would like to try and highlight.
After spending my time in the saddle getting experience working on some very large projects I can confidently say that I know what I am doing.
Some of my systems are now being used in the front line of today's technology, and I am proud to be able to point out different solutions and say "I did that". What’s more, I did it correctly, and it is still useful many years later.
As well as the bespoke software solutions that I have provided with my company, I had written many huge systems while working for other companies.
I wrote the system that automates Sunblest bakeries, so all bread including Kingsmill is made on my SCADA system. Its the same for Quavers crisps, and a lot of Britain’s pasta.
I wrote simulators and emulator device drivers for Hitachi smart cards and micro controllers, so I can say that today's state of technology with the microchip and smart card systems is partly (maybe even largely) thanks to tools that I generated.
I have also had input to the Ministry of Defence and know that systems I wrote for them are still being used today to help defend our country (Details are bound by the official secrets act).
And I wrote some of the tools for the initial Tandem systems that were the building blocks for online banking.
So now that I own my own business, why do I face problems when trying to sell my skills to a large company for a cheaper price than other software houses that have half of our experience?
This is an interesting question at the moment, and I think it can have a lot to do with the first impression given merely by the quote.
When a small business like mine tries to approach a customer to let them know that we are the best people to provide their software system, then we can always hit a problem because we are competing with professional sales staff from other companies. I know that when trying to sell something then, a sales professional is going to be better than a software engineer, but is that really what the customer wants? Problems that can arise from this is that the software engineers cannot actually provide half of the ‘blag’ that a sales person has said to get the job, and this is where projects fall down (NHS and Passport office are prime examples).
So on top of a sales professional knowing to say exactly what the customer wants to hear, what else could be tipping the scales away from small businesses on getting these contracts?
I know that larger software provider companies have many expenses including the following: employing a sales team, an accountant, a secretary, the director probably doesn’t know too much about computers but will take his wage, and the office rental. This will all have to come out of an invoice for work. The actual percentage of software engineers that will be doing the useful work that the customer is paying for probably makes up only 50% of the company expenses.
After looking at some of these larger jobs that have gone wrong like the NHS system, and the Passport office I can see clearly what went wrong, and where the inexperience was. I can probably take a guess that it was a very good sales person / consultant that sold the system to the customer while the actual experience of the programmers / team just couldn’t match the blag. The result of this is there is a system that has cost millions, but is of no use to anyone, and it will end up costing double to rewrite it to a state that it can be used.
Its not just these high profile jobs however, I see it everywhere in the current climate. A leading motor breakdown recovery company has just changed their computer system to automate everything and it isn't working. The offices are still working on paper 2 months after the system was supposed to be commissioned because once going live, the software providers realise that all of the current smaller systems just cannot talk to each other. So in reality - these solutions have sent the business 2 steps backwards.
So to highlight the problem again:
When I am in competition with a sales person giving it the spiel about what his team can do and why he is charging £1200 per day, how can I convince the customer that the reason I am charging under half of that is because I want his money to be spent on the solution, and not the running of all areas of my business.
How can I get the customer over the first impression of us being a small two bit software house, and gain confidence that we have a fantastic customer satisfaction rate?
Finally how can I convince him that this job isn't beyond our capabilities?
Do I just double my prices? I know that when approaching big companies in the past that we have been ignored purely on the quote. One of our quotes was a quarter of another company and I received a phone call telling me that I may not appreciate just how big the system was. The truth was I knew what was involved perhaps more than the sales person that sold them the solution.
Without naming names that was for a London borough community website, and a year and a half later, I still haven’t seen the finished product live. I confidently said I would have it finished mid 2006 if I was to do it.
Another large chocolate manufacturer rejected a quote purely because we didn’t have a permanent office and overheads like the accountants, sales staff, and all of the other things that cost money but don’t produce useful systems or end products.
We always lose out on government solutions, even though we have successfully produced these solutions in the past while working through other companies.
I guess half of this business is actually blag. If you can learn to give a customer a bit of flannel and make out that you are selling a prestige badge (back to the cars analogy) then you will have more chance of landing the work. So double your prices for no reason and all of a sudden the customer thinks "They must be good". It seems to speak volumes over actual reputation and previous work.
I'm not too sure about how to get this perception of badge prestige. Can it be done with image, and a nice website? I think that makes a good first impression, but ultimately you are going to need a bit of the expertise in schmoozing to be able to win over the customer and land that contract.
It perhaps goes to show that the age of getting out there and networking isn’t dead yet, and face to face will always take you higher than online marketing.
I have put down some interesting thoughts here, and I have raised some questions in my own mind while writing this. I will come back to this topic, later on. For now I want to keep trying with the online marketing question and see where I can take us before I jump into the sales world of ‘blagging’.
Please feel free to comment on anything you have read in this blog.
The main underlying question is:
Why should we have to charge £1000+ a day to get the big contracts?
It's not a bad thing I guess if you can keep getting those contracts, but consider the following scenario:
Buying a car.
When buying a car you don’t go for the cheapest because you perhaps want a little bit of luxury (say an air bag and an alarm).
You wouldn’t buy the most expensive car because you know that in this industry you can sometimes pay a lot for essentially the badge on the bonnet.
So you would read reviews, and take test drives and weigh it up and try and find something in the middle that offers good value for money.
So there is a massive difference between the car (and other) industry and the software industry that I would like to try and highlight.
After spending my time in the saddle getting experience working on some very large projects I can confidently say that I know what I am doing.
Some of my systems are now being used in the front line of today's technology, and I am proud to be able to point out different solutions and say "I did that". What’s more, I did it correctly, and it is still useful many years later.
As well as the bespoke software solutions that I have provided with my company, I had written many huge systems while working for other companies.
I wrote the system that automates Sunblest bakeries, so all bread including Kingsmill is made on my SCADA system. Its the same for Quavers crisps, and a lot of Britain’s pasta.
I wrote simulators and emulator device drivers for Hitachi smart cards and micro controllers, so I can say that today's state of technology with the microchip and smart card systems is partly (maybe even largely) thanks to tools that I generated.
I have also had input to the Ministry of Defence and know that systems I wrote for them are still being used today to help defend our country (Details are bound by the official secrets act).
And I wrote some of the tools for the initial Tandem systems that were the building blocks for online banking.
So now that I own my own business, why do I face problems when trying to sell my skills to a large company for a cheaper price than other software houses that have half of our experience?
This is an interesting question at the moment, and I think it can have a lot to do with the first impression given merely by the quote.
When a small business like mine tries to approach a customer to let them know that we are the best people to provide their software system, then we can always hit a problem because we are competing with professional sales staff from other companies. I know that when trying to sell something then, a sales professional is going to be better than a software engineer, but is that really what the customer wants? Problems that can arise from this is that the software engineers cannot actually provide half of the ‘blag’ that a sales person has said to get the job, and this is where projects fall down (NHS and Passport office are prime examples).
So on top of a sales professional knowing to say exactly what the customer wants to hear, what else could be tipping the scales away from small businesses on getting these contracts?
I know that larger software provider companies have many expenses including the following: employing a sales team, an accountant, a secretary, the director probably doesn’t know too much about computers but will take his wage, and the office rental. This will all have to come out of an invoice for work. The actual percentage of software engineers that will be doing the useful work that the customer is paying for probably makes up only 50% of the company expenses.
After looking at some of these larger jobs that have gone wrong like the NHS system, and the Passport office I can see clearly what went wrong, and where the inexperience was. I can probably take a guess that it was a very good sales person / consultant that sold the system to the customer while the actual experience of the programmers / team just couldn’t match the blag. The result of this is there is a system that has cost millions, but is of no use to anyone, and it will end up costing double to rewrite it to a state that it can be used.
Its not just these high profile jobs however, I see it everywhere in the current climate. A leading motor breakdown recovery company has just changed their computer system to automate everything and it isn't working. The offices are still working on paper 2 months after the system was supposed to be commissioned because once going live, the software providers realise that all of the current smaller systems just cannot talk to each other. So in reality - these solutions have sent the business 2 steps backwards.
So to highlight the problem again:
When I am in competition with a sales person giving it the spiel about what his team can do and why he is charging £1200 per day, how can I convince the customer that the reason I am charging under half of that is because I want his money to be spent on the solution, and not the running of all areas of my business.
How can I get the customer over the first impression of us being a small two bit software house, and gain confidence that we have a fantastic customer satisfaction rate?
Finally how can I convince him that this job isn't beyond our capabilities?
Do I just double my prices? I know that when approaching big companies in the past that we have been ignored purely on the quote. One of our quotes was a quarter of another company and I received a phone call telling me that I may not appreciate just how big the system was. The truth was I knew what was involved perhaps more than the sales person that sold them the solution.
Without naming names that was for a London borough community website, and a year and a half later, I still haven’t seen the finished product live. I confidently said I would have it finished mid 2006 if I was to do it.
Another large chocolate manufacturer rejected a quote purely because we didn’t have a permanent office and overheads like the accountants, sales staff, and all of the other things that cost money but don’t produce useful systems or end products.
We always lose out on government solutions, even though we have successfully produced these solutions in the past while working through other companies.
I guess half of this business is actually blag. If you can learn to give a customer a bit of flannel and make out that you are selling a prestige badge (back to the cars analogy) then you will have more chance of landing the work. So double your prices for no reason and all of a sudden the customer thinks "They must be good". It seems to speak volumes over actual reputation and previous work.
I'm not too sure about how to get this perception of badge prestige. Can it be done with image, and a nice website? I think that makes a good first impression, but ultimately you are going to need a bit of the expertise in schmoozing to be able to win over the customer and land that contract.
It perhaps goes to show that the age of getting out there and networking isn’t dead yet, and face to face will always take you higher than online marketing.
I have put down some interesting thoughts here, and I have raised some questions in my own mind while writing this. I will come back to this topic, later on. For now I want to keep trying with the online marketing question and see where I can take us before I jump into the sales world of ‘blagging’.
Please feel free to comment on anything you have read in this blog.
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