Are Big Companies Holding Small Companies back?

When will David versus Goliath end?

#BigCompanies #SmallCompanies

 

After many years of being in business, around business owners, decision makers and purchasing people, it still seems that Big Business is still enjoying the mantel of what could be considered to holding business back…..

Following attending several events over the last few months, something that really stood out, that in this economic climate, is still a real case of us and them – yet why?

Not going into the full details because that would be too specific, but what I will overview is something covers many aspects of so many businesses.

The requirement:-

  • A product or service is required on a regular basis allowing the client to utilise these products or services for use or re-sale  every day that there are in operation.
  • This product or service is just one part of the business so either single or small quantities are required
  • This product or service is one that could be offered to virtually everybody to use and the client is wanting to start being involved

The solution:-

  • The supplier being able to supply the product or service to every possible business and make it freely available with no limitations
  • Offer the product or service as per required based on what is needed. i.e. whether it is 1,2,7,34, 85, 162 or 1487 units across the SoHo, SMB, SME, Medium, Large, Corporate or Multi-National Business Arenas
  • Offer the exact same service or product to each one of those business arenas on a tiered platform offering

The reality:-

  • The service or product is only available in the quantities we – the supplier – dictate and aren’t prepared to budge
  • This is the price and we demand it as we have our costs to meet and thus we can cherry-pick the business arenas we operate in
  • The reluctance of the suppliers to adapt, mean other suppliers come to the market provide inferior products at the a lower price point or free
  • The battle becomes that the SoHo, SMB or SME Business Arenas have to battle through the pain of changing to free and payable products or services that are widely used, known about or freely and have the ability to interact  with everyone
  • The SoHo, SMB or SME Business Arenas are too support reliant and will cost us money according to the suppliers
  • The attitude by these suppliers are meaning that the SoHo, SMB or SME Business Arenas are not moving forward as fast as they can because the technology is not freely available
  • The suppliers are holding back not just the economy but growth and business development

The one that really strikes a very sore point is what could be considered either shortsightedness or being greedy/elitist. Either way this must stop and we need to actually work together to create a much better ad stronger economy.

A scenario that could explain this simply, is let’s say, an offering that has universal appeal and a need. The product takes a couple of years to develop, high wages are paid and then a workforce is increased by employing high paid personnel to deliver, sell and support. Let’s say it took two years, then it takes another year to bring to market and make people aware of it, so it is for sale in year four.

Well that all sounds good, but to get the RoI, they need to sell to big companies and above at high prices and quantities that means the number of sales per year will not be vast and in some cases at quantities above what those select clients need.

Yet, wait a minute, this is something available to every person and business but is only on offer to a few and at a high price – isn’t something wrong here and a major fundamental point being missed?

SALES!!!!

If companies really looked at the market arenas – they are aiming at maybe the Top 3,5 or 7% companies in the business arena and yet the product or service is available to 100% of the business market plus it is also available to the Public who are the next generation of business users – this is where you can actually have and quote in excess of 100%!!!

So, with this company being purely money driven and elitist, at some point, they could end up like so many companies and fail because they haven’t addressed their market correctly.

If they actually stood back and said right we are going to offer this same product and service on let’s say a five tier price plan per week or month (i.e £15, £10, £8, £6 or £4 depending at the level of product) and then offer it singularly from 1 through to 20 and then go up in blocks of 5 or 10 as opposed to offering it in quantities of hundred’s or thousand’s – this would make it so widely available.

What does this deliver?

Simple………

Sales actually being delivered early in year three and in climbing quantities as opposed to a few large sales maybe by the end of year three or sometime during year four! It could even be possible that the revenue of few large sales by year five actually matching the revenue of lots of smaller by the end of year three!

This is not only seen as being a total success but it is creating a much larger marketplace means people are adopting. Take for example, that of the wheel. If this had purely been kept for one sector – let’s say aeroplanes and no-one else was allowed it – where would we be without bikes, cars, buses, lorries and trains? I know this example is taking things to the extreme, but it a close comparison, as it would mean that traveling to other countries would be restricted and only available to those that can afford it.

In conclusion…..

Suppliers and developers need to actually start looking at other markets and really open their eyes and ears to the people and markets they are ignoring.

The games industry can’t hold back and sell to the few companies to get their RoI or reach mass audiences – they need to sell to everyone.

Another type of scenario, could be Television or Film. You have a book or script and do you go mass market via television or cinema and then download/DVD’s? Both delivery methods are used by the same companies as they either make television programmes, films or both!

So, companies need to take responsibility, and to deliver services and products to everyone! Thus enabling countries to grow and succeed…..

Or, do we have a few clients buying something over-priced that they can’t be use properly, as the masses are using inferior services and products that don’t quite interact/interface with each other?

The choice is your’s but I know what I think is needed……

 

This Guest Blog was written by Ian Calvert and for further information, you can visit his website here or alternatively, if you want to discuss this more or what we can do for either you or your business, then please complete the form below:-