Search
Blog posts tagged buying IT
Why does tech cost more in the UK?
August 18, 2014
Ever since the term ‘rip-off Britain’ gained popularity in the ‘90s, there’s been a lingering suspicion that UK consumers and businesses pay over the odds for some items.
Now new research from Which? seems to suggest that the concept of rip-off Britain is still alive and well. The consumer organisation has found that UK buyers are paying considerably more for tech products than US consumers.
Comparing identical tech products
The Which? research compared the prices of identical tech products in the UK and US. It found UK consumers pay more virtually across the board. In some cases, price differences run into hundreds of pounds.
And not all of that difference is accounted for by UK VAT, which — at 20% — tends to be a higher than sales taxes in the US. The research examined tax-free prices, revealing stark differences.
Here are a few examples:
- An Apple MacBook Pro 13” laptop costs £1,249 in the UK. But in the US, you’d pay around £1,055.
- A 65” Samsung TV will set you back £2,749 in the UK. Across the pond, expect to pay £2,347 — around £400 less.
- Adobe’s Creative Cloud Suite — a must-have for design professionals — costs £469 a year in the UK. In the US, it’s £355.
Richard Lloyd, executive director at Which?, is predictably frustrated by these pricing disparities:
“UK consumers are getting a raw deal by paying up to hundreds of pounds more for the same tech products on sale in the US. Manufacturers should play fair and explain why consumers are paying more for buying in the UK.”
What you can do to save money
Although this research confirms what many have long suspected, there’s not much you can actually do about it if you’re in the market for new technology.
When you run a business, there comes a time when you have to invest. At that point, the cost of not spending a bit of cash will almost certainly be greater than the cost of your new IT.
To cut costs, you can — of course — shop around. There are often considerable differences in prices between retailers.
And when you’re buying software, consider whether there are any free alternatives to which you could switch. This strategy is particularly useful when looking for software you’re only likely to use occasionally.
Total cost of ownership is what counts
But where business is concerned, it can be dangerous to focus on the sticker price above all else. Actually, you want to know the ‘total cost of ownership’ — TCO, for short.
This gives you some idea of what a piece of technology will cost you over its lifetime. So, if you’re buying a laptop that you expect to last five years, the TCO includes what it will cost to buy, maintain and so on.
Gartner research suggests that 80% of IT costs occur after the initial purchase, demonstrating that TCO is the figure that really matters.
Printers are a great example of this. A basic laser printer could set you back £100. But if you’re going to be spending £50 every time you need to replace the toner cartridge, what’s most important is the price of the toner, not the price of the printer.
Sadly, there is no easy way to calculate TCO. It depends on what technology you’re buying and how your business uses it.
And that’s where our last piece of advice comes in: your choice of IT supplier is most important of all. If your company doesn’t have IT expertise in-house, it’s definitely worth finding a local supplier that does.
Yes, it will cost you a bit of money. But the investment could pay for itself many times over in terms of efficiency gains and effective technology use.
Why ignoring IT investment is a dangerous game
January 31, 2013
If your computers look like this, it's time to upgrade. (Image: Flickr user Marcin Wichary.)
Good grief! According to a study from MSM Software, nearly half of businesses haven't invested a penny in IT for two years. A third of organisations are waiting for the economy to pick up before they implement any new IT.
While seeking to control costs makes total sense for many businesses in the current climate (particularly given recent growth figures), not investing anything in IT might be a false economy.
Doing nothing costs you too
There are two major problems when it comes to burying your head in the sand when it comes to IT investment.
First, there's the issue of reliability. It's kind of like expecting your car to work flawlessly even though you've not had it serviced for two years.
And secondly, there's value for money. If you've not evaluated your IT support contract or shopped around for web hosting in the last couple of years, you could well be paying more than you need to.
Ask the experts
If you've not given any thought to your business IT for some time, it can be hard to know where to begin.
Your first port of call should be any regular IT supplier you work with. Be honest with them: explain your situation, talk about any budgetary constraints, and listen to what they have to say.
We recently published a list of things to review every year. These are areas where you might be able to enjoy new features and save some cash.
Finding a bargain
When it comes to buying new IT equipment, don't be afraid to shop around. The difference in prices between suppliers can be huge - and in the current climate, you don't want to pay more than you have to.
Here are some tips to help you:
- Check all the major online resellers, including Dabs, Expansys, eBuyer, PC World Business and Amazon.
- Go direct to manufacturers too. Hardware giants like Dell, Lenovo and HP all sell direct from their websites.
- Look for end of line models. Hardware updates happen frequently, so you can usually get more for your money by choosing a slightly older model.
- Search out open box bargains. Some online merchants sell stock that's been returned at a significant discount. Most of the time it's good as new. Try Amazon Warehouse Deals, eBuyer's outlet or the Dabs clearance corner.
Have you bagged a bargain recently? Share it with us in the comments.
I need a new computer with Windows 98
February 13, 2012
My business provides IT support to its clients. And increasingly, IT support isn’t just technology support; it’s business support. That’s because using IT as a strategic asset can set your company apart from its competitors, bringing you more sales and boosting your profits.
That’s the mantra I stick by and use as the yardstick for all my conversations with clients. Good IT will result in good business.
Not quite a straightforward upgrade
So, you can imagine my surprise when a new enquiry came in from someone who said they needed to update their IT equipment. On the surface it was a straightforward job: new computers, a server and updated software.
However, it turned out not to be quite as simple as I first thought.
Things took an unexpected turn when this potential client told me that the new computers had to run Windows 98. Yes, Windows 98, which was released nearly 14 years ago. It’s so old that Microsoft even stopped providing support for it in 2006.
When I pressed them on this, the conversation went something like this:
Me: “Why do you need to run Windows 98?”
Potential customer: “Well, we have this invoicing software that was set up for us years ago.”
Me: “Ok...”
Potential customer: “The guy who set it up doesn’t work here anymore.”
Me: “I think I see where this is going.”
Potential customer: “It only works on Windows 98 computers. We have a Windows XP machine but that won’t run the software, and our Windows 98 machines are dropping like flies.”
Me [after thinking for a moment]: “I think the key issue here is to look at the software and sort it out first, rather than try to just keep Windows 98 running indefinitely.”
Bespoke software can cause problems
This business was facing is an issue I see all too often. That’s software, written or installed by an individual (not an off the shelf product) which is ‘bespoke’.
It’s great for the first year or two, while the person that installed it is around and able to help. But 15 years later (yes, they said they’ve been using it for about 15 years!) it becomes a problem because the installer or designer is no longer around.
My plan in this case is to check out the software properly before making any further suggestions. I guess it’s probably some kind of customised spreadsheet or perhaps a bespoke database.
However, the key point is that this software is hindering the company’s ability to use IT effectively. It’s stopping them from being efficient, productive and responsive to new orders.
The lesson for us all is clear. It’s vital to get advice from IT professionals who understand your business and its needs both now and in the future.
Technical people are fantastic. They can do magic things to fix software or resuscitate a dying PC. But it’s my experience that they often fail to consider the needs of your business. When you’re looking at a big investment in new software and equipment, they are far more important.
- What to ask when choosing an IT support company
- How to avoid problems with software developers
- Do you really need custom software?
Craig Sharp is MD of Abussi.
Why your software doesn't do what you wanted
December 14, 2011
Don’t end up with software that’s like a square peg in a round hole
When you buy software you assume it will do everything you need it to do for your business. After all, the marketing literature said so! But after they have committed to purchase and installed the software, many businesses discover that:
- There are limits to the expected functionality
- They need to buy new equipment to get any benefit
- Some functions are not part of the basic package so they need to purchase add-ons
- Their PCs and network need to be upgraded
- They need to bring in technical support to set up or make changes
If this happens to you, you’ll find you have not bought what you thought. Worse, you’ll have incurred unplanned and unbudgeted additional costs.
Why your software requirements matter
The most important thing to do before buying software is to clearly define, communicate and agree your requirements up front. Then agree objective acceptance criteria so both you and your supplier know exactly what is expected: you won’t sign off the software until it meets these criteria.
Often, achieving this seems as likely as me winning the pole vault in the 2012 Olympics (I’m not keen on heights!).
Indeed, the analysis and thought process involved in establishing your acceptance criteria can, in itself, ensure you are objectively considering what your business needs. Establishing success criteria forces you to ask the right questions when considering an investment in software.
How to define your requirements
These are the kind of questions you should ask when it comes to defining requirements:
- What are my business objectives? For instance: quality, automation, clear business processes, return on investment, reduced timeframes.
- What features and capabilities need to be delivered? Be explicit.
- What constraints must be applied? For instance: cost, timescales, business process change, risk, infrastructure, maintainability, upgrade.
- What are the longer term requirements and does the software need to support a longer term strategy? Essentially, does the software need to grow with your company?
- What are my acceptance criteria?
The last one is key, because acceptance criteria enable you to establish clear, objective measures that will ensure both parties (you and the software supplier) know what is expected, what is being delivered and can be happy when requirements are met. They will cover areas such as:
- Specific capabilities and functionality - what do you need the software to do?
- Technical requirements - what kind of computers or network will the software need to run on?
- Performance requirements - how fast should the software run, how many users should it be able to handle, how much data should it be capable of processing?
- Training needs - how much training will be required and how will it be delivered?
- Business process changes - what changes will your business have to make to accommodate the software?
- Maintainance and support - how and when will these be provided and carried out?
The criteria have to be objective and defined to the right level of detail. Why objective? Tell two people you are thinking of buying a great new car and one will tell you to buy a Porsche and the other a Nissan. Perhaps that’s a bad example … I would go for the Porsche every time, but that just goes to show that we do not intuitively consider other people’s perspectives!
Avoid ‘satisfactory’ performance
Specifically, I have seen many companies make the mistake of defining criteria to say ‘performance must be satisfactory’. This is a totally subjective statement and could mean anything. It often results in endless unsatisfactory debates - once it is too late - about everyone’s interpretation of the word ‘satisfactory’.
The right business critical software can transform your business, but you need to know exactly what sort of transformation you are looking for – and you must be clear on why and how you will assure success.
Read more about buying software for your business:
- How to avoid problems with software developers
- Creating your IT requirements
- Choose and use IT suppliers
Susan Chadwick is co-founder of Edge Testing Solutions.
Small business technology advice, tools and resources | IT Donut
Copyright © 2010-2016
