I have been wanting to do this for quite sometime, but I finally have put together what I call Ed’s List.
Simply put, it is a list of the IT (information technology) professional knowledge firms of which I am aware who:
- Offer only fixed price agreements and do not bill by the time unit
- Have eliminated timesheets for all professionals.
- Offer a service guarantee.
The list can be found at http://edkless.com/edslist/ or by clicking the link for the list located at the top right of this blog.
If you or someone you know belongs on the list, please let me know and I will add them forthwith.
In pricing guru Reed Holden’s latest newsletter and blog post, he drives home the point that while IT buyers tend to look like are buying on price they really are not. They just use low price providers to drive down the prices of others.
The way to call them on this is to offer options, including a bare bones option. Once the prospect reject the idea of the lowest price, they are no longer a price buyer. We need to call them on this.
Also, IT providers need to lead with a strategy of distinguishing themselves as knowledge firms, not service firms. This means positioning themselves more like insurance companies do. With insurance (healthcare excepted, but do not get me started), we pay for things we do not want. With IT, we do not want problems.