I've been very busy at work, negotiating an expensive contract for system management tools... I can tell you, these vendors sure are proud of their product.
I work for a large company with a lot (no, I mean a LOT!) of computer systems to manage and all the vendors whose products I evaluated (all of them good products) looked at our organization and went nuts.
I'm serious. Crazy. Loco en la cabeza.
I made it clear that the usual pricing scheme of ($X * per object) was not going to fly and that I had a limited budget.
I don't think they understood the words coming out of my mouth.
So.... I get the quotes and they are beyond outrageous.
I guess they looked at the public information about the size of our company, did the mental math with their standard pricing and tasted the salt on the margaretas by the pool at their retirement condo in Cabo San Lucas. Each of them must have thought that this sale was going to be their El Dorado, and each protested when compared to another software company (who is currently running TV ads which accurately depict their own smiling cardboard salesman pushing product by saying "Good, I'll put you down for 500")
[rant]
A little advice for salesmen of all stripes but especially for software salesman selling to engineers...
Dammit, I know my job and I expect you to know yours... if you cannot explain the software, bring an engineer who can and stay the hell out of his way. Interupting a demo for a sales pitch wins no converts, it even pisses your engineer off.
Do NOT start any quote with some made-up, so-called list price that no one has ever paid and then give discounts from that inflated starting point. You will just piss me off by disrespecting my intelligence. Learn the real value of your product and price it accordingly. Your perceived value of your product doesn't mean shit to me, I'm looking at the money it will save or the security it will afford. I am not asking you to give the product away but I could care less if your CEO has to work till he's 50... I plan on working till I die.
And don't send me a 4 meg .pdf with spiffy graphics and all that sales bullshit, a spreadsheet with the numbers in it, properly calculated will do just fine. I'm just going to jump to the botton, then scroll back up to find the price so don't waste your time on fluff.
Know that I have read your company's financials and I know your cost of sales. I'm an engineer, not a retard. There are only so many places you can spend the bulk of "cost of sales" dollars:
1 - Commissions
2 - Discounts
3 - Advertising
I also look at what positions you are looking to fill. If the only job postings I see on your web site are for sales help I worry that you are a marketing company and not a technical company. It's the rare salesman who adds anything to a technical sale but tech support is a requirement that can make or break a deal.
I'll be waiting for you when you sober up and figure out what your product is really worth... till then, Im gonna be rolling my own management solution...
Posted by Mike S at April 7, 2003 06:58 PMGood to see you back. Did you get my email?
Posted by: Bill on April 8, 2003 09:49 AMLet me know if you want to buy anything. My garage is full of tempting items.
Posted by: Steve H. on April 8, 2003 01:53 PMGee, Mike, I thought your company negotiated with vendors by saying, "This is what we're gonna pay. If you don't like it, take a hike. We'll find another vendor that will sell at that price."
Posted by: Ralph Gizzip on April 8, 2003 08:06 PM