[thelist] targeting effectively

martin.p.burns at uk.pwcglobal.com martin.p.burns at uk.pwcglobal.com
Tue Mar 26 04:30:00 CST 2002


Memo from Martin P Burns of PricewaterhouseCoopers

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>>in cases where it actually costs more to make it degrade, if you
>>explain the ramifications of it not degrading to the client, many
>>(most?) will make it within the budget for it to degrade if the
>>project is important to them.

>My experience has been the opposite. A smaller budget is more
>important than reaching that extra 5-10%.
 Mental arithmetic time (I've made the numbers simple) - if your project
has fixed costs of $10000 and the contribution to profit of each item sold
is $20, selling 600 rather than 550 (a 9% uplift in sales and revenue) will
gain what % uplift in profit?

Part 2 - that uplift in profit will realise what % uplift in your chances
of getting the work.

Recommended reading to teach you how to do simple business case
development: Cost Justifying Usability
http://www.amazon.co.uk/exec/obidos/ASIN/0120958104/martin043

Cheers
Martin


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