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Controlling PC Support Costs

Don't let a budget surplus burn a hole in your pocket or drive up PC support costs.

I began my career, more than a decade ago, selling PC hardware to large colleges, universities and school districts.

In the educational world, as in many government entities, there’s a use-it-or-lose-it budgeting philosophy that permeates the purchase of PC-related products.

Use It or Lose It

So, for example, if you’re the science department chairperson for a local school district, and you have a $500,000 budget this year for computer products, you “need” to spend it.

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What are the consequences of not spending your total technology budget?

For starters, any funds left over will not carry forward to next year. And, the board of education probably will believe your department no longer needs the full annual $500,000 budget for computer products.

Your department’s allocation likely will be reduced going forward. So there’s a year-end rush to deplete the technology budget account, regardless of whether the timing is right for getting the best purchase value or controlling computer support costs.

All too often, small businesses fall into a similar trap, ignoring the entrepreneurial instincts that got them on the map in the first place. Don’t feel that just because you’re having a “great” year, quarter or month, that you need to buy every PC gadget and gizmo you’ve ever dreamed of having or heard someone gushing about.

Good Mood Buying Binges

Along the same lines, resist the temptation to compress all of your PC-related purchases into a brief window, when the owner of the company may be in a good mood and approachable about technology spending.

Cost-effective use of small business technology comes about through detailed planning and execution.

Heading down to the warehouse club or local office supply superstore and splurging impulsively on a $20,000 computer shopping spree with your corporate credit card may feel good.

But without proper planning, these sudden tech asset purchases actually may increase your company’s computer support costs.

The purchase price of hardware and software is only a fraction of what these assets cost your company to own and operate.

You need to consider all the related expenses, such as installation, customization, training, support, troubleshooting, maintenance and upgrading, as well as many other related soft costs.

 

Tip:
Be sure to carefully research how your PC vendor handles warranty service and technical support. Both areas are discussed later in this chapter and can have a huge impact on your computer support costs.

 

Action Items

Do you have a written technology budget for the year?

If so, what happens if you don't use up your technology budget during a given year?

What kind of advanced planning goes into how your company acquires PC-related hardware assets?

Do you consider anticipated support costs before purchasing new PC hardware assets?

Do major technology purchases usually follow on the heels of a great year or great quarter?

Have you regretted making a hasty PC hardware purchase, because it turned out to be an extremely unreliable system or very difficult to support and troubleshoot?

How does your PC vendor handle warranty service and technical support?

 

 

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