Biz to Customer as compared to Biz to Biz. B2C is more expensive per transactioin than B2B because B2B has economies of scale and has fewer variable trying to predict or control, which is the Biz representive or the Organization. B2B is how we are and most filipino biz because of the limitations of our culture and management style.
I believe the future of the family biz is B2C or being able to provide a product to the end user. This is both in Furniture and IT.
Funriture and Construciton B2C
- The ability to create furniture products with 50% more efficiently. reducing the cost of materials by 20% and be able to reduce the labor costs through automation and process improvement by 80%. (note because the labor cost component of the materials are smaller compared to the total cost of the product). We cannot hope to beat the prices of China with its near cost-0 logistics but we can still have a lower Total cost of ownership through modularity, open designs, and ability to source any laborer to perform the fix. Similar to Rossmans’s group where all the Training material is available we will do the same..
- Same with construciton. same factors as the furniture but with the dimension of that we cannot control the worksite since construction is on site.
IT Services that are best B2C
- Customer Support similar to an Electrician or Plumber visiting the house to fix things for physical as well Options for Remote customer support. Particularly support that is performed per need instead of a Transaction. This invovles keeping a file on the customer and their IT requirements. You want it to be the services and expertise provided helps companies and inviduals reduce their costs. Like setting up their PFsense so they have load balancing for their home or small biz as well as how to administer their Pfsense (and giving them a link for how to do their own configurations).
- ERP migration and customer training for ERP use and biz optimization.
- Equipment REpair services – highly trianed IT that can become a local repairer to contribute to rossman group and contribute to open repair. Particularly focused on being able to train many young filipinos to get into repair and IT and access to hardware for troubleshooting. How does it make money? CHarging justifiably like Rossman group but open sourcing all of it and taking and getting access to as much E-Waste that can be used for Training material (broken or for disposal computers)>
- last but not least I discovered Codeweavers and the open nature of Compatibility layers. I discovered that codeweavers reverse engineering services to get a target software to work on Linux. the codeweavers work on the billable IT costs of the US standard which is 250usd/hour (thats company hours), so their prices reflect that. The Philippines billable hours are 40-100usd/hour, and in india its 20-60usd company billable hours.
- https://en.wikipedia.org/wiki/CrossOver_(software)?wprov=sfti1
- https://en.wikipedia.org/wiki/Proton_(software)?wprov=sfti1
- https://en.wikipedia.org/wiki/Wine_(software)?wprov=sfti1
- https://en.wikipedia.org/wiki/Cedega_(software)?wprov=sfti1 (check out how they violated Share-alike or not returning contribution; i can imagine a Twitch or youtube episode of all the techniques of how the person worked on the softare to get it to work. basically Rossman repair videos but with Debugging software)
- https://github.com/wine-mirror/wine
Company billlable hours vs Freelancer Hours.
basically its the Composite of a Teams + Overhead billable hours. if a Team is a Biz Analyst, Developer, Supervisor, Documenter and requires services to document and present the activities and the overhead. Our company has a total Cost of IT ownership roughly at 10M php/ 200k usd a year that serve about 250 comptuer users (the 100 non-computer users dont count) – this includes all the hardware AMORTIZED by their worklife and of course the Utilities and Salaries that are recurring costs. That works out to 45k php/year/head or about 700usd/head/year or about 70usd/month. I think ours is own of the cheapest in the Philippines given the context of our business and the clients we serve (and their Vendor Qualifications).
Even if the Salaries of the philippines are for 5-10 years of experience is just 550usd/mo or 7k usd year working out to be just 4usd/hour a teams usd per hour can be 20 with overhead and the company needs margin for the uncertainty and periods with no work to bill for.
Leave a Reply
You must be logged in to post a comment.