Thursday, November 26, 2009

Setting Right Expectations Upfront!

Setting expectations will help one do better business. Successful company will develop a relationship with the clients by telling them will give you a good quality services – but nothing comes for free.

I have worked with software consultancy firms where in I have observed two schools of thoughts. Giving something for free to get the business and then charging high rates to get more business that’s first. The second school of thoughts is – set an expectation up front that there is nothing like a free lunch. We will charge you reasonable rates but we will not do anything for free.

IMHO doing something for free sets wrong expectations. Bring us to a rather philosophical point – grid. Let’s all agree it’s a only human to have unlimited wants! You give something for free and they will want more. This act of giving a free ride - generates grid in minds of the clients and they will ask for more. Again, if someone has to pay very high rates, I am sure they will have a lot more expectations too which will ultimately break the hell loose for the poor developers who will end up burning mid night oil not only for the work they are doing for free but also for the implementation phase where in they have to churn out more. Exceeding expectations is the most dreadful (worst) nightmare come true for them.

Morale of the story: If we set expectations right (and upfront) there are a few tangible advantages. :-)

2 comments:

  1. You put it very well together, and I guess later school of thought is more professional although all of my employers have been former school (which brings me to conclude former is more prevalent in tax consultation industry). Just human psyche i guess.

    BTW, its good to see you back in form, they say-

    Less compilation, more composition. A way to go. Keep going :-)

    ReplyDelete
  2. Well...i don't know much about business but i believe it's somewhat similar to life. You can't apply one rule / strategy for all. It all depends on situation and time.

    ReplyDelete