August 19, 2009

New Software = Open Heart Surgery

Posted by John Shaver under Business Strategy, Why Hire Aries? | Tags: , , , , , , , , , , , , , , , , , , , , , |
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Recently our friends at Microsoft Business Solutions (Great Plains, Navision, Solomon and Axapta) have been attacking Sage and their partners from a truly odd angle.  Apparently the folks at MBS think that businesses purchase accounting, inventory, manufacturing, human resources and customer-relationship management software based on whichever software vendor is currently running a sale on their respective products.

For a business, implementing a new software system is just as invasive, complicated and risky as it is for a human to go through triple bypass open heart surgery.  In both cases, the patient could very well die!  Many businesses have been put out of business by software implementations gone sour.

I posed this question to several of our MAS 90, MAS 200, MAS 500 and Abra customers:  If a Microsoft (or any other software) representative called or came by your office today and offered you their software for free, would you be interested?  The answers are a unanimous NO.  Just like the kids in the Lio cartoon below, they are not interested in open heart surgery for their business even if the doctor gives it away for free.

Would you go to a doctor who discounts or offers a buy one/get one free surgical procedure?  I don’t think many of us would be interested.  So, why would any business purchase a software implementation based on price?  Especially when that software becomes such an integral and vital part of that business that it cannot live for long without the software functioning properly.

I seek out the doctors who have new patient waiting lists of several months.  They’re the best ones and they are almost always the most expensive and the most successful.  The same goes for technology consultants.  Do you really want to work with software from a consultant who isn’t busy and can only compete based on price?  Sounds like a recipe for disaster to me.

And notice how many customers Dr. Lio brought in with his free offer.Lio

 

August 10, 2009

What Is Your Company’s “Experience”?

Posted by John Shaver under Business Strategy | Tags: , , , , , , , , , , , , , , , , |
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Last week I went to get my hair cut at Belleza Salon in Knoxville.  I’ve been going to Belleza every 4 weeks since 2002 and highly recommend their services.  My most recent trip was a little different than any other previous trip, however.

I showed up a few minutes early for my appointment (I know it’s hard to believe that John was actually early for something!) and was greeted by stylist extrordinaire Rob Davis.  Rob told me that the customer ahead of me had shown up late so he was running behind.  He apologized and offered a free salon treatment while I was waiting.  Being a guy, I was a little apprehensive.  Was I really interested in a hand treatment?  After a little deliberation, I decided to take the offer.

 I sat down for my treatment and met Holli Brockwell who explained the process.  She offered a card that is good for $20 off of a facial treatment.  Again, being a guy, my response was that I ‘m not interested in that but my wife definitely would be.  Holli said that was not a problem and that my wife could use the card anytime.  And she offered a great suggestion:  Go ahead and book the appointment for my wife, prepay for it and surprise her.  Holli didn’t approach this like a sales person.  Rather, she made sure the Belleza experience was exactly what you would expect from a high-end salon. 

While I was getting my treatment, I noticed that several other customers were getting the same treatment.  The thought crossed my mind that Rob wasn’t really running late at all and that this was a smart marketing move on Belleza’s part.  What a great way to show even a long-time customer that they are capable of much more than just hair cuts.  And of course, what guy isn’t going to take the suggestion of setting up a day at the spa for his wife or girlfriend?

What type of experience do you provide to your customers?  Even if your business’s products are not easily differentiated from your competitors, you can always differentiate by creating an experience that your customers enjoy and look forward to.  Many of your customers may not be aware of all of your company’s capabilities.  There are many creative and innovative ways, like the approach taken by Belleza, to make sure they know about everything you can provide to them.  The art is to create an experience that customers will want to return to.

 

July 16, 2009

New Tennessee Unemployment Insurance Wage Base Increase

Posted by Amy Shaver under Technology, What's ahead for Sage and Sage Products? | Tags: , , , , , , , , , , |
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The Tennessee General Assembly recently passed new legislation intended to prevent the state’s Unemployment Insurance Companesation Trust Fund from becoming insolvent.  We have been advised that the fund has become ‘dangerously’ close to becoming insolvent by this year or early 2010.  The fund woes are being brought about by the recent record number of claims for unemployment insurance benefits. 

First, the legislation increases Tennessee’s taxable wage base from its current $7,000 limit to $9,000.  This change is retroactive to January 1, 2009.  All wages paid in 2009 are subject to the $9,000 taxable wage base.  Second, the legislation provides for an additional fee of .6% of all unemployment insurance premium rates on Premium Tables 1, 2 and 3.  This change is also retroactive to January 1, 2009. 

Businesses will receive an Employer Statement that will list the amount due for the additional .6%, based on previously reported first quarter 2009 taxable wages.  However, this statement does not include the difference between the $7,000 and $9,000 wage base increase.  The Department of Labor and Workforce Development  is relying on the employer to report the difference.  They are asking that businesses report any additional taxable wages (those over $7,000) from the previously filed first quarter 2009 premium report as additional year-to-date taxable wages on line 3 of the second quarter premium report.  Then, simply continue with the $9,000 taxable wage calculation on each employee’s earnings for the remainder of the year.

Sage Software has released a new tax table available for installation to your MAS 90 or MAS 200 payroll module.  The tax table update changes the limit from $7,000 to $9,000.  It does not add the additional .6%, nor does it recalculate any wages.  

Please feel free to call Amy Shaver at Aries Technology Group, LLC (800) 990-6646 or (865) 342-4300 ext. 21 if you have any questions.

 

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