Peter Skouhus

Many times I hear the following argument:

I need to meet the people I do business with to see if the chemistry is there and to get a feeling if I can trust them.

I say no you don’t; you need broadband, Skype and a WebCam…..and then you need some guts. Some of the biggest deals I’ve ever made were done through Skype with people I’ve never seen!

Every day I spent three hours surcing new customers. I usually use the telephone / Skype calling companies who may be interested in our IT services. Over time I’ve learned all the objections customers have for the IT services (Web development and design) we offer at 1902 Software. The biggest problem, or rather the argument used most times, is that people want to be able to go and visit their supplier, to look the supplier in the eye. Being located in the Philippines that poses a challenge  when the customers are in Germany, Switzerland, Denmark or United States.

The solution

The solution is to use tools such as Skype videoconferencing . All which is required is a Web camera, a decent microphone (must be a USB microphone) and a broadband connection. With these three items anyone can have a meeting face-to-face and see each other’s reaction to whatever is being said. Aside from being more convenient it also saves lots of money.

Despite this marvelous technology I still find quite a bit of resentment among many potential customers due to the distance. I -subjectively of course- cannot understand why people don’t embrace this fantastic technology with open arms. Take a look at the numbers below. I am comparing using Skype versus flying to Hong Kong for business meeting (the following is a very simple calculation)

Plane ticket                                 USD 1500

Hotel accommodation           USD 1000

Miscellaneous expenses        USD   500

Food and beverage                  USD  500

———————————————–

Grand total                                 USD 3500

In addition to the above costs is the cost due to loss of productivity. Compared this with a Skype meeting without loss of productivity etc. etc. This is a no-brainer but it is a change and people hate changes.

Conclusion

At 1902 we has set a goal of cutting travel expenses by 50% in 2009. If I had it my way all customer meetings will be done through Skype and videoconferencing. I see travel as a necessary evil because many customers simply will not buy unless you go and say hello.  I am sure it will change over time, the better the videoconferencing the less people need to travel for business.

Instead of spending all the money sending people all over the world, spent the money developing your employees, set up extra curricular activities, develop new technology, develop new products or whatever works for you, but don’t spend money sending people all over the world when they can sit in the office and do the same thing.

Business travel is old fashion.

This blog was written by Peter Skouhus. Peter Skouhus is president of 1902 Software Development Corporation, an IT outsourcing company based in Manila, the Philippines.

You can read more about 1902 at http://www.1902software.com in English.

You can read more about 1902 at http://www.1902software.dk in Danish.