Q: Why CSC or David Nelson,
Consultant?
A: There is a trend towards flat-fee
centralized support that contracts with local technicians
for on-site service. It is a volume based call center
support model. Ten years ago I saw that model coming
and had to make a choice - quantity vs quality.
We know our clients, their business and technology -
inside out. We don't hire tech's at minimum wage +
25%, if we contract or hire anyone, we hire consultant
level people, not employees. There is a BIG
difference.
While other's think they know what "pro-active" is (i.e.
they monitor things), we do much more than that. Most
of that is automated, we do that too, but we dig
deeper.
Some issues have to be tracked and researched - and
there are no immediate solutions. Call centers use
"case tracking" systems. When our clients have an
issue, even an ongoing one - a real live human being is
researching it, testing it, monitoring it, thinking about
it, pondering it.
You cannot commercialize or volumize that level of
personal attention or support. Call center
support personel get bonuses for getting you on/off the
phone as fast as you can. We know our clients, our
clients know us.
OUR TYPICAL CLIENT?
Our clients are individuals and small businesses that
need a "team player" on their team, but most likely cannot
afford, nor need an IT consultant on staff.
Most small businesses do need an IT person in their systems
and networks several hours a week. It is the only way
to stay "pro-active" and head off failures.
Home based businesses, law offices, dental offices,
chiropractic offices, dr. offices, anyone with an office
with 1 or more PC's or server(s). Pre-purchase
decision making and deployment is big part of what we
do. We want our clients to be able to budget
their IT expenses and simply use their technology in a way
that serves how they work, how they want to work and how
technology can help them.
Oddly enough - one of the things we most often do - is
simplify the technology, shielding our clients from having
to deal with techie things.
Q: So what is your approach &
model?
Years ago we decided we'd rather have fewer quality
clients, than pursue a volume of clients. The volume
(and reactive model) is more profitable IT business
model.
We enjoy the work we do and the personal contact and
relationships we establish as part of what we do. We
have no intention on being the least cost solution for our
clients. We do want to be the best solution for our
clients.
Our goal/objective is to be the highest priced, most
expensive, even outragously priced consultant(s) in
our area. We want our clients to be powerfully
profitable and successful. We know that proper
utilization of IT resources by someone who both understands
the "technology" and the "business side" of technology is a
powerful and profitable combination.
We work towards keeping the technology deployed
"simple". We make our recommendations based on what
is best for our clients rather than any affiliate or
partner comissions that are available.
This may seem odd - but from an ethical perspective - we
want everyone to pay full retail and even
pay tips and bonuses as part of a life approach to
business and living.
Why? The least cost "bean counter" approach has
its place, example UPS saved millions by changing their
delivery routes with an emphasis on "right turn" only
routes. That is an example of a good decision.
Just because I can hire someone for minimum wage, when I
can afford to pay them double that, and their value to my
company supports that, and I am in a position to do that -
I would rather over pay, than underpay for quality
(anything).
It is an attitude of prosperity backed by action which
attracts more prosperity. A real life example - I
needed a new starter on my vechical. I found a place
that diagnosed the problem, and repaired it in about an
hour. The cost, labor, plus part was $120.00.
It didn't seem right, and the people that did the work was
amazing. I paid them $150.00, and told them
they were underprice, but I appreciated that, and asked
them for the opportunity to pay more than what was
asked. It took them a few minutes to figure out how
to accept more money than they asked.
It's the world I want to live in - so I create it where
ever I am, and I teach this and other business and life
coaching contexts to my clients, friends and family.
I love what I do in helping people and businesses.
When I take care of my clients - what they receive is more
than just "technical" support.
Q: What are your rates, how much is a
typical service call?
A: We adjust our rates on a
case by case, client by client basis. Normally new
client's offices/systems are a mess. Frankly - they
can't afford to get them cleaned up at our "full
rate". We make an assessment and a flat rate 90
day proposal to get things taken care of and brought up to
CSC standards. We make an investment with our time
and knowledge into our client's business and
technology.
The costs depend on number of systems, what
needs to be done, network status, etc. Let me give
you an example: A new client in the naturalpathic
industry that had multible systems, network, and a variety
of issues - needed about $20,000 of work. We proposed
a 3 month, $1000.00 month flat rate to clean up a 5 page
list off issues. By the end of the 90 day period of
time, we'd be able to give a proposal for weekly pro-active
care, which once those issues were taken care of, would
ideally be about $200 to $250/system per month. Every
client and situation is different.
We have in the past invested in client
businesses with our knowledge and time. Once someone
is a CSC client - we work hard to establish a relationship
of mutual benefit, and we take care of our clients.
They are quite spoiled actually (laugh), after a few years
of being with us - they don't want anyone else. We
loose clients to "death", or "retirement".
We have clients who have moved to different
states, and have asked (almost demanded) that we
figure out how to support them. We have and we do!
(laugh)
Our Full Consulting
rate: is $200/hr during normal business
hours. $300/hr on nights/weekends, and $500/hr during
holidays. The typical "Geek" in our area charges
about $125.00/hr. Depending on the
project/situation - we often normalize our charges to a 1/2
day, or daily flat rate. $1,000/day, based on two 4
hour segments, and include up to 2 hours of travel time +
fuel expense.
We charge more because we do more, and are
more effective. When I've examined actual
results - we accomplish more in one hour, than your typical
geek accomplishes in 4, the problem is, the typical "Geek"
doesn't know what we know, and often times fixes one
problem while creating 3 more.
I've trained some of these geeks (laugh)
so I know there are a couple of good ones out there.
We have a new client coming on board that
within 5 minutes we identified why they were having network
stability issues, their $125/hr "geek" that works for a
larger support "company" in 24+ months couldn't
resolve the problems, even by replacing/updating
systems (they over paid about 30% for those systems)
and had some legal liabilities due to policy and compliance
issues - a serious smoking gun that most businesses have
and they are not aware of it.
Not all "geeks" are created equal. Which
is why we are called "Guru's" and "Computer
Whisperers".
DISCOUNTS: Our
Established clients get discounts off from those full
rates. Our full rates are based on the highest rate
in our area for the highest level of quality and
service. David personally reviews all invoices for
fairness and value
There are various "gotcha" approaches to
billing I see my collegues use. Example: $50 (for the
1st 15 minutes - minumum 4 billing units), I see really
cheap rates in the nickle ads. My rule of thumb
is if it's too cheap, there is a reason for it.
Our clients run their lives and businesses on their
computer systems. It is one area of their business
they need to really take seriously in order to actually do
their business day to day.
There are a lot of security, access,
government compliance, liability and trust considerations
when you allow anyone to touch your systems. That is
the business side of things that most "Geeks" are clueless
about. If you don't combine a "technical" consultant
with a "business" consultant - you may have vulnerabilities
that could put you out of business...or even in jail.
When CSC takes care of you, you get the benefit of two
consultants for the price of one!
FAIRNESS POLICY:
Ultimatly - we have a "fairness" policy. If our
client(s) are not satisfied with the value received we let
them adjust their final invoice. We've never had a
client do that because if they are unfair to us, we let
them go as clients.
EMERGENCY -MELT DOWNS:
Our clients don't have these anymore, once their systems
are up to our CSC standards. Until then,
sometimes things happen - and when they do - we do not
"stick it" to our clients (not even our new clients), we
have interest free, in-house financing for our labor.
We do require pre-payment for our hard
costs. We don't deal with collections issues with our
clients. We take care of them, they take care of
us. If there is an issue, we work through it.
Sometimes serious things happen that are
beyond your control. It is very easy to rack up
a $3,000, $5,000, $10,000 to $20,000 IT bill (even $40 to
$60kl if you have 10 or more systems networked on a server
with HIPAA considerations!). We have never not
worked anything out with our clients. We've had
clients go through "hard times", we still took care of
them, regardless of their ability to pay.
Have you ever been taken advantage
of? Yes, we've had some folks try to take
advantage of us. We don't deal with negative
issues or predators. What we do for our clients is so
filled with value that it is a powerful edge and advantage
to have us as part of their business team taking care of
their technology, on-line marking, A/R policy &
proccedures. Those that do not understand or
appreciate that - we do not keep as clients. They
identify themselves pretty quickly.
We had one of those show up last
year. We did our 90 day program. We hit all
of the 90 day objectives 60 days early (we like to
"kick butt" and get results. Part of what we were
doing was taking this clients business which was
invisible on the web - to being in the top 3.
They guy was a jerk, and a predator and he
didn't appreciate anything. Not only that, he
argued his flat rate invoice even though we exceeded
all expectations and milestones set. (It was
actually the most odd and weird thing I ever
experienced.)
We stopped taking care of him. His
marketing disappeared and I already know that systems
not maintained become glitchy within weeks, sometimes
days.
I heard his office manager left, some
legal issues were surfacing, he's invisible
online. His office manager made sure we received
some payment. We generally do not "sue" clients
or send them to collections. We are a positive
focused business where we want everyone to win!
His real loss was losing our support. We wish him
well, but I must admit, there is satisfaction when
predators fail.
We had a client unleash a virus on his own
system. Times were tough for his business. We
did $10,000 of work for him. We were doing well
in other areas of our business. We had a
"client appreciation" billing for him, and zero'd out his
invoice. Why? He's been a client for over
a decade, in fact I sold him and his family their first
computer. His business has come full
circle.
We have a huge tool box of solutions backed by
experience in everything we do.
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