Red flag: When a customer looks for a false benefit
We’re sometimes told by potential customers that, rather than sign up for a Timewatch product, the organization’s decision maker has found a free timesheet system or a budget system that costs half the price of what we charge.
Sad story short: we lose the potential customer.
However, because we care about our products and how customers see value, we take a look at the alternative products our potential customers sign up for and get – we admit – very frustrated.
We usually discover the product they decided was a better choice for them doesn’t have the time-saving features our products have and that, eventually, they will end up not just using an inferior product but paying MORE for their timesheet service.
Time, as we all know, is money. And time-saving is free money for you.
Some basic numbers to help you save real money
Look at it this way. The person in control of your organization’s purse strings LOVES numbers so let’s do some basic figures for them. Don’t panic – it won’t hurt too much.
Ignoring payroll costs and benefits, an employee earning a $50,000 annual salary costs your organization around 25c per minute.
- If timesheet Product A cost $5 per month and its supposed ease of use saves your staff one hour per month then it may cost your organization $10 but it will save $15 – a total saving of $5.
- If timesheet product B costs $15 per month but saves two hours per month, it may cost $15 on paper but saves $30 – a total saving of $15.
What you actually need to look at is how cost effective the product you want to purchase will be.
If cheap were good, you should be using pencil and paper, but you don’t use pen and paper because that is a waste of time.
Wasting time costs money but saving time doesn’t cost money
Do you want a free time tracking system? Use a pen and paper.
Don’t look at the price. Look at the cost effectiveness.
Is it worth spending the extra money? The answer is that you need to know what a minute of your organization’s time is worth. Calculate your organization’s dollars per minute and then calculate the money you may save.
If that system doesn’t save you money, of course – take the free one.
On the other hand, you may pay for the timesheet software you ultimately decide to use but it will save you time and that time is worth your money.
If you’d like to discuss these ideas in more detail please get in contact by clicking here.