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Thx for the very detailed response. I think the main wisdom for me lies in understanding how it is important to take into account the budgeting process of big c
by santy-gegen 3y ago
Thx for the very detailed response. I think the main wisdom for me lies in understanding how it is important to take into account the budgeting process of big companies & to also use a margin of safety technique when deciding the price.
Thank you very much!
- epc 3y agoI used to work for a large F100 company where I had to know no later than June 30th what my expected expenses would be for the next fiscal year (January-December). Any increase in expenses or acquisition of a new product required going through an extraordinary escalation process. Smaller companies may be more flexible but also may not be able to absorb price increases. For what it’s worth, the same F100 company was notorious for taking anywhere from 90 to 180 days to pay invoices…because it could. If your price is above a couple hundred (US) per month you may not be able to just use credit cards/paypal/etc and need to learn the ins and outs of procurement systems.
- santy-gegen 3y agowow, it sounds extremely bureaucratic but then again there must be some reason why bureaucracies come up with size. it's a great warning and very kind of you to share this info with me. I'll do my best to avoid these pitfalls when selling to big co's. Also, it seems pricing your product under 100 bucks might do the trick