5 reasons why offering reasonable prices may backfire on IT companies.

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5 REASONS WHY OFFERING REASONABLE PRICES MAY BACKFIRE ON US, THE IT MAINTENANCE COMPANIES. BECAUSE IT IS KINDA IMPOSSIBLE TO HAVE QUALITY, BEST PRICE AND QUICK DELIVERY IN ONE PACKAGE.

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This presentation delves on the 5 reasons because of which IT companies cannot be in the position to lower their prices.

Transcript of 5 reasons why offering reasonable prices may backfire on IT companies.

Page 1: 5 reasons why offering reasonable prices may backfire on IT companies.

5 REASONS WHY OFFERING REASONABLE PRICES MAY BACKFIRE ON US, THE IT MAINTENANCE COMPANIES.

BECAUSE IT IS KINDA IMPOSSIBLE TO HAVE QUALITY, BEST PRICE AND QUICK DELIVERY IN ONE PACKAGE.

Page 2: 5 reasons why offering reasonable prices may backfire on IT companies.

When it comes to services, clients can select any two of the above aspects.

Giving Priority to low price implies sacrificing on either Quick delivery or High Quality.

QUALITY, PRICE OR TIME ?

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SO WE DECIDE TO OFFER LOW PRICES, NOW WHAT?

LOW PRICE = LOW PRODUCTION COSTS. UH-OH.

# 1- YOU ARE COMPELLED TO IGNORE SERVICE LEVEL AGREEMENTS.

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#2- COMPROMISE ON REFILLING THE SPARE PARTS AND BUFFER STOCKS.

This is another way to make your contract cheaper, but it is not exactly a smart move to ensure customer trust and loyalty.

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#3 – TESTING SPARE PARTS IS OUT OF THE QUESTION.

This implies quick delivery, but horrible quality, in fact, the chances of your manufactured IT server crashing within the first few days is going to be

unusually high. Say goodbye to long term business growth.

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#4 – SETTLE FOR LOW QUALITY WAREHOUSES AND STORAGE.

This issue inevitably leads companies to the first issue.

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#5- RESORT TO WEAK IMPLEMENTATION TESTS.

You have firmed up your maintenance contract with a partner, and they may see no need to send his team to visit your stocks, check your systems or map your solutions. You’ll save money in this case because sending an engineer

into the field is expensive. But how much can you actually put at stake?

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