How to score higher margin work
You know what’s easy in the digital media and SaaS business? Accepting the fact that you have to do low margin work to drive your revenue.
Lemme ‘xplain…
So lets say you are a brilliant web developing shop. You have a small, cost efficient team and you are truly awesome at building sexy websites and applications. What I see too often is these shops going after techie media jobs. They end up talking to IT professionals or seasoned digital creative people when bidding for a project.
They end up talking to people like me. I know how long things take, what level of skill is required, and what are the relative costs of doing such a job at other outfits. I am a bad customer. Although I maybe a pleasure to work with because I can problem solve and act as a partner more than a client, I also drive the hardest bargain and demand the most particular work.
The point I am trying to make is that the more experienced your client is in your product area, the lower your margin will be. The key is to find high margin businesses with low exposure to your area of expertise.
Most Lasik surgery clinics have basic websites that they likely overpaid some college sophomore to make. What about family-owned jewelry stores? Most gyms have shitty sites too. Where is the “online trainer app” from your local gym that you interact with through SMS? The more odd the fit of the idea, the greater the probability you can bill through development and expertise building to the client.
Agree? Disagree? Let me know by email or comments.
No Comments, Comment or Ping
Reply to “How to score higher margin work”