Why buy local...technology??

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Permalink Reply by Scott Abel on June 10, 2008 at 7:30am

Well, of course, there needs to be a business reasons for any software purchase, and geographic location should have nothing to do with it, most of the time.

Why buy local? When it's the best solution for your business needs.

How can suppliers improve their marketing? Oh, let me count the ways. First, rid yourself of the desire to wax idiot in your marketing materials. People aren't stupid, but marketers apparently think they are. For instance, pretty much every company claims to be the "leader" in blah, blah, blah ... and yet folks with access to a dictionary know this cannot be true (there is only one leader, all else are followers). This may not seem like it's important, but in a world where authenticity sells, it's very important to be real.

Hire a professional who has street credibility in the technology sector and/or the vertical market you are in. Just because a marketing firm has beautiful materials and a long client roster does not equate to knowing how to reach your audience. Your audience is not your company, nor the marketing department (or external agency), so it really doesn't matter what either of these groups think. What matters is what real humans in your target audience think about your products.

Note: One local company that is doing it right is ChaCha, the search alternative to Google. See, I was able to tell you exactly what they do in just a few words ... it's an alternative to Google. So, whatever their marketing folks are doing, one thing they did right was to simplify their elevator pitch and make their story easy to remember.

Seek people with audience to help you. I have an online community aimed at content professionals and a blog with 20,000 subscribers. All of my readers are interested in managing content as a business asset. So, if you market anything that helps folks ensure their content is accurate, up-to-date, secure, customized, personalized, etc. I should know about it. But, I also work in the content management space, a related discipline in which processes and combined with people and supported by software to ensure that an organizations content is under control.

You may need to find others like me who have influence in your market.

Aside from that, many local companies think way too small. If you want to compete against the big boys, learn to act like one. No one said you have to spend millions on ad campaigns, but use your time and resources wisely. Step outside the old school marketing box and start using technology to help you reach others.

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Permalink Reply by Douglas Karr on June 10, 2008 at 8:53am

I think there's 2 sides to this coin - a lot of businesses (including the one that I work for) look outside Indiana for prospects. We tend to dismiss how large our local economy is and that it can absolutely support a variety of businesses.

Since we're funded locally, we're introduced to a lot of the other local businesses here in Indiana - and we've been amazed at the local technology firms - Bitwise Solutions, Centric Consulting, Interactive Intelligence, Bluelock, Vontoo, not to mention Kristian Andersen, RareBirds, EverEffect - companies who serve the tech sector.

The advantage of buying local with technology is enormous - we love to beta test our applications with local business, providing them keen insight into our development roadmap and getting them features quicker than other clients!

If you'd like to get introduced to the exciting things that are happening

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Permalink Reply by Daren Tomey on June 10, 2008 at 9:22am

Pat,

Great article and post here! From my point of view, I think it is a two way street. It is the responsibility of the local technology companies to embrace local buyers as much as it is the other way around. At Compendium, we are making a concerted effort to do just that through an increased participation in local networking events, Smaller Indiana, and local/regional trade shows. Many companies become enamored by the ability to sell nationally and even internationally when in all honesty, the state of Indiana represents boundless opportunities.

We have a very large and strong local (Indiana) client base which continues to grow month over month. At the same time, we are growing nationally and internationally, however we rely on these local business decisions and feel strongly that the local business community represents tremendous possibilities and growth for Compendium for many years to come.

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Permalink Reply by Amy Stark on June 10, 2008 at 1:01pm

There are at least two reasons why technology companies are more successful selling out-of-state, in my humble opinion.
1) Geographic diversity bodes well for a technology infrastructure company such as Blue Lock. September 11, 2001 was a big wake up call for companies that had their talent AND infrastructure in one place. Buying out-of-state--rather than local--makes perfect sense when a company wants to ameliorate the risk of losing everything.
2) I think Hoosiers are a bit slower to accept change. How many times have we seen things, (technology, fashions, etc…) take off on either coast then slowly make their way to the middle? Please understand I mean no disrespect—I am a proud Hoosier born-and bred-- but more often than not Hoosiers are cautious and choose NOT to be on the “Bleeding Edge” of technology.

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Permalink Reply by Erik Deckers on June 10, 2008 at 2:50pm

I think to remedy it, more Hoosier decision makers need to commit to buying locally first. Our own governor committed to it in the first months of his tenure. . . only to privatize the Indiana toll-road to a Brazilian/Australian consortium. Okay, bad example, but you get my point. It's going to take business owners and managers deciding to give Indiana companies a try first, even if it means paying a little more than the out-of-state companies are charging.

And of course, there's the problem. No one wants to pay more than they have to. So is it worth a 10% higher price to get the same thing that an out-of-state firm can offer? (And I've been in sales and marketing for 14 years, so you don't have to explain the whole "cost vs. value" thing to me. ;-) )

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Permalink Reply by Chris on June 10, 2008 at 4:56pm

I think these are all good points. One thing we have noticed (and we are just starting to focus more of our efforts into the local market) is that there tends to be a lack of knowledge about local companies. As I have worked in the Indy area longer and longer I have realized that there are more and more great companies but they are hidden. Some of it I blame on local media - it seems the big few get covered time after time - and some I blame on a lack of strong network - though that seems to be changing with efforts like SI and others.

We also don't seem to embrace the "start up culture" here in Indiana. A lot of places the start ups are where the best and brightest are - here it is almost a hindrance and you have to overcome being a start up to prove that you are worthy of getting noticed.

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