Thursday, July 22, 2010

Domestic and Corporate Models

Despite what I wrote in There Are No Corporate Decisions there is a difference between domestic and corporate clients.

Ten years ago I was happily fixing computer systems – hardware and software – for my friends and small-business owners. Today I avoid that like the plague.

I have been burned too often fixing a system at night-time only to get a call a week later “My nephew installed some new software and now I can’t Print/Type/save/eat/Drink/Sleep”, or worse “… and now the changes you made don’t work; please come and fix them”.

Sometimes it is their spouse’s best friend’s gardeners mechanic’s son.

Corporate clients seem to expect to be billed at a daily rate starting around $1,000 and just going UP. Domestic clients want to know if twenty-dollar bills is alright.

Corporate clients speak in terms of P.O. numbers, proposals, contracts, and it is pretty easy to generate a water-tight proposal that spells out, in writing, what you’ll do for them, how much it will cost, and when it will be finished. (if you need help with this Talk to Me ),

So you’ve got your little domestic business model worked out, the colored crayons, the place mats, the bits and pieces, and people pay you for the small jobs, and it all adds up.

The catch is that the corporate clients can’t understand that. No corporate client worth their salt thinks in terms of $25/hour for a two-hour job.

So you need a second business model for the corporate clients.

Domestic clients get to pick and choose how much of everything they want, and they get charged per item, per hour.

Corporate clients are offered a rather large and very inclusive package; there is little choice. They get three of everything without being asked – no discussion no negotiations.

Two hours training is not an option. It’s a 2-day workshop. And it isn’t $150 per person per day; it is $1,500 per day for a group of eight. Whether they send eight or not.

You Don’t Believe Me?

Keep track of your hours the next time you start treating a large corporation like a domestic client. You’ll be amazed at how much time you spend trying to communicate on the wrong wavelength.

Talk to Me !

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