Be Aware of Indirect Costs

When considering the costs of your current data management system(s), you need to consider both direct costs (how much you pay to actually use the software) and indirect costs (e.g., workarounds required, staff headaches, missed opportunities fro selling, etc.). In many cases, indirect costs far outweigh the direct costs of software, but are often unseen or ignored.

A client told me she was having trouble with staff turnover, especially with younger staff. When I asked her about her technology, her eyes got big and she said: “The last staffer who left me told me in her exit interview that she was leaving in part because the technology we had made her job so hard to do.”

That’s a great example of indirect costs. Don’t be penny wise and pound foolish. That “cheap” or free software might have much higher indirect costs than you realize.

 

About Wes Trochlil

For a quarter century, Wes has worked in and with dozens of associations and membership organizations throughout the US, ranging in size from zero staff (all-volunteer) to over 700. In that time Wes has provided a range of consulting services, from general consulting on data management issues to full-scale, association-wide selection and implementation of association management systems.

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