by Scott T. Rauth
Scott Rauth is President of
Entire Computer Solutions. He can be reached at (913) 385-7800
Technology promises to take the hassle out of financial transactions, but the basic of business is people - whether one is in banking or retail or computer sales. For years, business schools taught the 4 P's of marketing - Product, Price, Place and Promotion. But then there came the realization that another "P," a fifth "P," cuts across all the categories - People.
Another change in the 4 P's is the idea that Price is displaced by Cost. Sure, the sticker price of a product is a significant factor, but when it comes to durable goods, Total Cost of Ownership (TCO) is more important than the up front acquisition cost. In computer sales, the TCO includes the original cost of the computer and software, hardware and software upgrades, maintenance, technical support and training. Most estimates place the TCO at about 3 to 4 times the actual purchase cost of the PC.
But how many sales people will tell the customers that? Too often, mean and lean sales tactics, coupled with consumers' fear - fear of being left behind the technology and fear of appearing to be left behind -leads to bad purchases.
The mistakes in purchasing can take several forms. As already mentioned, if the buyer does not consider Total Cost of Ownership (TCO), budgets can be stretched to the point of significant damage to operations. But even beyond the failure to consider additional costs related to systems, there is the ever too common phenomenon of overblown sales. By this I mean that time and again, companies are sold more technology than they really need. Trusting the people in the sales positions, business owners pay for entirely new systems, rather than integration or upgrade options. Or they acquire more technology than they can really use.
So, how can you as a buyer be aware of such pitfalls - by making sure you are dealing with good sales People. Here is a good, sequential checklist to apply to sellers:
Situational Analysis:
Sales associates should consider goals, budget, timetables, and existing equipment. They should know what you are trying to achieve so as to determine if your purchase is a good fit. They should consider how the technology will be installed and if it is compatible with existing systems, as well as if the staff will know how to use it and use it to its capacity.
Company Analysis:
Sales associates should be able to tell you how long the company they represent has been around and what's the return and repair and warranty policy.
Sales Associate Analysis:
The sales associates should be able to tell you how long they have been with the company and what their level of expertise is. You should know if you would be able to reach this person on a follow up call.
By using the checklist above, you will insure that your Total Cost of Ownership (TCO) is considered at the time of purchase of a product. Your technology is no good unless you and your employees can use it.
You should also resist sellers who pressure you to buy the most advanced or latest technology without really knowing your business. Seek sellers who will work to tailor your purchase for your business. And find sellers who care what happens after you buy, and will be there after you buy. Don't allow yourself to be bullied away from cheaper models or less capacity. Any company worth working with can readily offer an underlying rationale for what they are selling you. Remember, with all of the options available, it pays to work with someone who takes the time to understand your business and will not just sell you a printer at a great price.