IMPORTED FROM SKOOL
Original post by Viktor Heide on Sep '24
I’m on the board of the company, and we are re-evaluating our build. We are facing a specific obstacle. Our software and hardware solutions, especially the use of our analytics product, help customers save money by better understanding their office usage. The issue is that this could lead to fewer office spaces and rooms being needed, which directly contradicts the terms of our contracts.
We primarily serve large enterprises, often in the public sector, and provide both hardware and software solutions.
Any tips?
1 Like
Michał Narkiewicz - Oct '24
Hey Viktor, I think this is a very interesting case.
Based on the information you provided and what I’ve found on the page, here is my diagnosis:
Issue:
Misaligned incentives. The more value you bring, the less money you get.
Probable Cause:
Basing your metric on hardware. Each desk needs hardware, so by default, it became your metric for software.
Possible Solution:
You provide value in two ways:
- By increasing employees’ productivity (increasing deep-work time by minimizing distractions, etc.)
Ulrik Martinussen - Oct '24
Hi Viktor,
I am in line with Michał that you should consider having some sort of “savings sharing model.” However, to make this work, you would need to have a “spacing fit service” in place. Without you selling this as a service, I find it unlikely that your customers would be willing to share savings with you.
I do not know the competitive situation in your market, but if no one else is offering this service for free, it could be a great service to include in your portfolio. In such a case, it could provide a valuable differentiator.
Coach Mahgul Nikolo - Oct '24
To tackle this challenge head-on, consider the following strategies:
- Refine Value Proposition:
Clearly articulate how your analytics product drives cost savings and operational efficiency, positioning it as essential for optimizing space utilization.
- Implement Flexible Contract Structures:
Explore usage-based or tiered contracts that reflect real-time occupancy data, allowing for adjustments as clients downsize.
- Communicate Strategic Benefits:
Emphasize that even with reduced space, clients maintain operational efficiency and long-term cost savings, making the reduced office space a strategic advantage.