Re:How “We’re booked” was ruining our business
by madaxe on Monday May 13, 2013 @08:17PM
(#5702314)
What you've described there boils down to two core concepts:
1) Curves of supply and demand. If your demand outstrips your supply, increase your prices until you lose ~50% of the pitches you go for, on the basis of price alone.
2) Sell. Sell sell sell sell sell. Don't worry about your capacity today. Worry about your capacity tomorrow. Give N month lead times for commencement (people will live with this if they want you badly enough), take a deposit, and use it to hire.
It's a bit of a razor's edge to run, as if you're not careful you'll find yourself under-resourced, delivering late, and fucking your reputation in the behind with a broomhandle. If you are careful, and you model out your resource needs based on past performance, you can anticipate your resource needs to fulfil your demand, and you'll grow like a whale on steroids.
1) Curves of supply and demand. If your demand outstrips your supply, increase your prices until you lose ~50% of the pitches you go for, on the basis of price alone.
2) Sell. Sell sell sell sell sell. Don't worry about your capacity today. Worry about your capacity tomorrow. Give N month lead times for commencement (people will live with this if they want you badly enough), take a deposit, and use it to hire.
It's a bit of a razor's edge to run, as if you're not careful you'll find yourself under-resourced, delivering late, and fucking your reputation in the behind with a broomhandle. If you are careful, and you model out your resource needs based on past performance, you can anticipate your resource needs to fulfil your demand, and you'll grow like a whale on steroids.
I like obtuse allegories.