Last year, before the recession hits the States, I met up with some friends and we started talking about small company vs large company. Most of them say that large companies will be better since they’re more stable, consistent and productive. The small ones, to them, are too risky since these companies might suffer from cashflow problem, headcount problem, etc.

The small guy will be able to outrun the big guy and make him tired

I told them, that mentality is true and applicable for 2008 but not in the future. Why? Because there will be more and more changes ahead, more so that the large companies might not be able to handle them. Most of us know that large companies are very process-oriented and they have a certain set of procedures you need to follow for every action. I used to work for a Fortune 500 company, and at 1 point, I requested to upgrade my laptop memory to 2GB. The whole process took 3 weeks since it needs the approval from some IT managers in the States. 3 weeks…for something worth RM 200-300.

Anyway, as I’ve predicted, many so-called large companies are falling and falling fast. Retrenchments are not being made by small companies only….but also big companies (some are formerly known for being the best employers in their respective industry). In fact, most of my friends from large companies are suffering job losses or pay cuts but those in smaller companies are only suffering from pay cuts (they only lose their jobs if the company get closed down ).

The thing here is that large companies tend to spend too much time handling their processes and procedures, while the small companies (the good ones) are spending their time changing and adapting to the new environment. In this ever-changing world, whoever can adapt the fastest will win. This is something important and everyone should remember…..but sadly…not many believe in it.

So if you’re still thinking that large companies are better than smaller companies…….think again. In my opinion, it’s better to keep it small or medium for now since changes will be inevitable in 2009 onwards. You wouldn’t want to be the last in the queue to make the changes.

I will be starting on a series of “What customers want?” articles from now onwards. These articles are actually written based on my personal observations and opinions (and rants). Hopefully it’ll help people understand more about what customers really want.

Or more like, what does Alvin Lim really want? LOL

Anyway, the topic here is Security. Everyone wants security especially during economy crisis like this. People want cheap and lasting stuff so that they won’t have to spend money to buy a replacement. In other words, they want to get something which is gives good value for money, or good return of “investment”. Why? Simply because buying a replacement can be very expensive. Imagine buying a new 32 inch LCD TV to replace the 2-year-old 32-inch LCD TV. With the combined price (which is very expensive), you can easily get a 42-inch Full HD LCD TV (I think…but well, it’s just an estimation).

I wonder if there's any company giving this kind of warranty coverage?

I know that few years ago, when people are still spending a lot, some of the cheaper stuff do not come with warranty period because it’s just too expensive for the businesses to offer that. Still, people will buy because if it doesn’t work, they can just buy another one. But now, situation has changed. More and more people are starting to feel the heat from the economy downturn and they are not willing to risk their hard-earned money on something which is not “secured” or without a warranty……unless it’s dirt cheap…like 80% off the original price.

Funny thing is, most businesses do not realize this and they still think customers are willing to risk their money to get something which can break down anytime.

This happened to me today (start of rant). I went to IKEA to look for an office chair and I found a RM 350 chair which is the type that I’m looking for. But it was over my budget. So I went to the furniture shop near LDP (Kelana area) and found an office chair which is pretty similar but RM 290. After some “discussion” with the sales guy (kudos to my mum who is very ruthless when bargaining for cheaper price), I managed to get the price of RM 260. Here’s our conversation after the “discussion”:

Alvin : So if I want this chair, do you think my car can fit in the box?

Sales guy : What box? This is cash & carry. This is the unit you’ll get.

Alvin : Oh.. display unit eh? Then is there any warranty period?

Sales guy : Aiyah, won’t break down one. It’s brand new.

Alvin : How would I know? Maybe you’ve put here for many months. So, is there a warranty period?

Sales guy : Nope. We don’t give warranty period for something this small.

Alvin : Ok, then I’ll get from IKEA.

Seriously, I rather fork out the extra RM 100 to get something brand new and also to buy the “security”. I don’t think I want to spend another few hundred buying yet another chair if the RM 260 breaks. It’s just too risky and certainly not a good investment.

That’s why if you’re trying to sell something to your customers, you must remember that most customers want security or some kind of assurance that the item will not break. If it does, at least, they want to know that they can replace the item with zero fee. Either that, or give them an extremely cheap price which will allow them to buy another new item if the existing one breaks.

As for me, I will still prefer to pay that extra money to get that “security” or warranty. No security, no deal. No assurance, no deal.

P/S….not sure if it is Assurance, or Insurance, or.. ? Ah well, I know “if” statement more than English now.

Everyone has their own priorities when it comes to spending their hard-earned money. Some people spend on toys for kids, some people spend on games, some gadgets, some cosmetics, etc. Honestly, there’s no right or wrong since it’s personal preferences even though we still get to hear pretty often things like “Aiyo, why are you spending so much on such gadgets?” or “See? Spending 40k to go to Timbuktu, such a waste of money”, etc.

Louis Vuitton (LV) bags

But to me, we will never understand why people spend on those things unless we are in their shoes. Guys will never understand why girls spend so much on cosmetics and fashion stuff (LV bags…omg… =_= so freaking expensive bags). And girls will never understand why guys love gadgets so much.

So the next time you want to comment on other people for spending a lot on something that doesn’t make sense to you…..think again. It might not make sense to you….just like the things you buy don’t seem to make sense to other people.

I think in the end, the most important thing is for you to know what you are spending on and your own priorities especially during recession period. Is the thing you buying really worth it? Can you live and enjoy life WITHOUT it? Will the value depreciate a lot after you’ve bought it? Ask yourselves such questions and hopefully the answers will be able to help you in making the right decision.

P/S… by the way, I don’t know how much it cost to go to Timbuktu. I assume you’ll need at least 40k in order to come back alive.