Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs.
Most small businesses costs quickly start to increase when providing all the tools for staff and training to get full benefits to reduce cost. Whereas a capable Freelancer will have that handled, which reduces the need of adding any additional costs for software, compliance, and commodity buying knowledge across all sectors.
It depends on your management style, the stage of your business, the growth forecasts, and your experience and goals.
Don't overlook the benefits of time management in areas of helping owners or key employees, to stay focus on core business goals, which leaves enough time in a day to complete all task at hand.
Can't be in two places at one time! Or wishing you can clone yourself to get more done. Now you have a platform that provides a service that matches most of your need requirements.
Adding more staff brings on other challenges then just cost, it raises the question do you have enough work for that one person to stay busy full-time? You end up having someone who does multiple roles in the business to justify paying them a full-time wage. As your client base grows, it can be very hard to find specialist within Supply Chain Management. Especially when there are competing priorities that can pull them in multiple directions, and directly affect your bottom line.
What do you do when one of your staff members is out sick, or they're on vacation? Or maybe they've got a family emergency or just don't feel like coming into work one day. How will you cover their workload and keep your clients happy?
At 1700 Buyers our concept flows with the understanding owners control their priorities every day, and using our platform gives them a database of knowledge in Supply Chain Management.
Our unique platform will help you with your presentation pre-sale support, case studies, results, and any ideas to meet your expectations which means you have time to focus on closing the client. We want our clients to be successful, owner obviously want to make money. Right?
It's an important question to ask because if you don't get it right, then what's the point of everything else? You are ultimately in business to make some money and create an enjoyable lifestyle for you and your family.
First things first, your pricing to your client needs to be realistic. If you are not getting discount pricing or poor term and conditions, then you're doing both yourself and your client a disservice. Because if you aren't charging the right price to your clients what's the point. Giving them a poor man's version of the service only limits how much business they are willing to give you. A price that is fair and allows you to deliver a high-quality service to them.
Freelancers charge a fixed fee, hourly rate or a mobile rate that matches their skill set for the scope of work clients are requesting.
Fixed fees are a common way because it's simple, easy for the client to understand and it also means there is less management controls to reduce cost per hour. Which allows completion of project base on milestones payments within our system. With this pricing model, we would recommend going with a set budgeted spend. Ultimately there is no perfect pricing model. It depends on your business model and scope of work requested to each Freelancer that matches their profile. Freelancer will not take on a project they can't complete because it will hurt their rating profile status which means customer service remains their top priority.
First, be confident, be authoritative and be clear throughout the process. Make sure you set expectations every step of the way, so they know what is coming next. Be realistic and honest.
Make sure you have effective communication that matches deadlines because it will affect the rating of the Freelancers. Each Freelancer should be clear on how their internal process will work.
All these things are critical within the process to have a successful outcome, so make sure you have a checklist to help you capture the information you need to get started. Work through the checklist together so everyone is on the same page to be confident that project will be delivered on time and match agreed terms and conditions.
Freelancers thought process of asking the right questions, which leads to limited need of going back to client with a secondary set of questions. The process needs to be cohesive and remove any unnecessary stress on the client. Start in sync from day one. Ask quality questions, set clear expectations, be cautious and only promise on what you will deliver. The more you can communicate with authority and confidence about project, more trust will be built in early stage of the relationship.
When it comes to deciding on the right Freelancer for your scope of work, here the most important consideration: Select an experience person that matches your industry to get best resolves.
Freelance Services isn't for everyone, but without a doubt, it presents owners an alternative to consider.
Small Businesses that flourish is those that find a way to overcome the most common challenges of finding knowledgeable people in Supply Chain Management which leads to high overheads, high turnover, overworked staff, and an overwhelming amount of stress on the owner.