Everything Has a Cost
Everything comes at a cost: steak dinners & pre-sales engineering has to get paid for somehow. That should be obvious to most. Feature requests also come at a cost, both upfront, and ongoing. Those ongoing costs are not always understood.
It’s easy to look at vendor gross margins, and assume that there is plenty of fat. But remember that Gross margin is just Revenue minus cost of goods sold. It’s not profit. It doesn’t include sales & marketing costs, or R&D costs. Those costs affect net income, which is ‘real’ income. Companies need to recoup those costs somehow if they want to make money. Gross margin alone doesn’t pay the bills.
Four-Legged SalesDroids, and Steak Dinners
A “four-legged sales call” is when two people show up for sales calls. The usual pattern is an Account Manager for the ‘relationship’ stuff, with a Sales Engineer acting as truth police. These calls can be very useful. It’s a good way to talk about the current business challenges, discuss product roadmaps, provide feedback on what’s working, and what’s not. The Sales Engineer can offer implementation advice, maybe help with some configuration issues.
Often a sales call includes lunch or dinner. Breaking bread together Continue reading