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Re: Who's the customer


Quester -

Nothing unreasonable about the working relationship you've discribed. It would be nice if all "primes" out there operated like yours.

Most problems arise after the sub-contractor signs on the dotted-line to do the work. Our customer (the prime) wants to change some of the "scope of work" details, but doesn't want to compensate for the change-order. You're right, most of the squaking on here is about the compensation most primes are paying out. It's all business to me. Want to change the contract or re-write it but not pay for those changes?? Buh-Bye. I"m gone.

I'm here to make money. I run my own business. Something I learned a long time ago was how to measure a "fair business deal" for both sides. We're all looking for that win-win contract. What I learned was this: There are 3 key components to any business transaction:

#1 - Price of the product or service.
#2 - Quality of the product or service.
#3 - How fast will the product or service be delivered or completed.

As a business owner, I let the customer choose two of the three, and i get to determine the last item. If my customer wants it for a low price and high quality, then I will determine when it gets done.

If my customer wants is done on his schedule and up to his quality, then I set the price. I think you see how this works on keeping things fair and win-win

If the customer wants to dictate all 3 items, I walk away. Customer choosing all three is not fair to me as a business owner. I'll lose money, time, or risk my reputation for quality work, or all three.

The nice thing is, there are Primes out there that understand this business principal and have no problems with it. Others haven't a clue. Even worse, there are subs that haven't a clue and accept a bad deal and send thier business on the downward spiral to being out of business. Some just learn the hard way I guess.

2-pennies
This is CABL.com posting #220802. Tiny Link: cabl.co/m5Bu
Posted in reply to: Who's the customer by Quester
There is 1 reply to this message
Re: Who's the customer Quester 6/18/2008 11:23:00 AM