Defining Business Services:
A good friend of mine called me the other day. She loves talking business and asked me a few questions about Frog On Top. Questions like, are my margins good, what’s your price model, how many price points do you have… I told her that answers to those questions vary. She then told me that that might be my problem. A flaw in my business model. How could I possibly know what clients want if I don’t have any predefined packages for them to chose?
Here’s the thing, having predefined packages work great if you’re AT&T or Time Warner. They have all these great bundles, it’s all very straight forward. McDonalds, same thing. A number #1, number #2… perfect. You know exactly what you are getting and everyone is happy. There’s no waiting at the register, no fuss… in and out…done with your order. That all works great for The Man. The Corporation. Actually, many consumers are starting to move away from prepackaged “deals” and moving towards the more free form, HULU and Google TV. Why am I paying for channels I don’t want or ever use? We pay because we don’t have a choice. It’s either AT&T or 5 others. With Web design and development, it’s YOU and about 10 million others. Competition is abound. So unless you are willing to be flexible and dispatch with the rigidity of bundles or packages, you’ll go the way of the dodo.
So how many price points do I have? I don’t know, when is rent due? Is my team idle? If rent is due tmrw and my team is doing nothing but hanging out, then my price point will reflect the situation at hand. Within reason of course.
What’s your margin? That depends on how badly you’ve messed up during the process.
The point is, it’s just never the same. Client’s needs are all different, their vision and their industry. Sure it’s all 0′s and 1′s… but we’re not just dealing only with computers. Not yet anyway…