First thing that came into mind: Is It Worth the Time? https://xkcd.com/1205/
Show HN: Is It Worth the Cost?
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Re: Show HN: Is It Worth the Cost?
#12This seems really flawed. Let's plug in numbers. This says that if a service costs 125$/month/employee and I have 1000 employees ($125000/month) I will save ~5 million a year. However a service costing 1.5 million at such a company has other costs. Namely that a product that costs that much almost always needs an in house support team. I have never seen the case where an expensive product also didn't need 2-3 people…
If you're a relatively small company looking to use a plug-and-play SaaS product with a modest subscription fee to serve some business purpose this is a great tool to get some quick and dirty numbers on whether it would be better to use or maybe build in house or go another route.
If you're purchasing some large, highly configurable enterprise tool (with high implementation and support costs) that all 1k of your employees will use daily and you'd like to understand cost/benefit, other means of calculating this should be used (and it would likely require days to weeks of multiple people's time to make such a calculation).
Re: Show HN: Is It Worth the Cost?
#131. I’ve yet to find a service that saves 5 hours per week per employee. How do I estimate the actual savings in time?
2. Work expands to fill available time. Will my employee use that time to the company’s advantage?
3. How much does this increase or decrease my personal time required as supervisor?
4. From a financial point of view, I’m still paying the employee and the service, so either I need enough services and time savings that I can eliminate a job, or the service has to have positive ROI of its own.
And probably many more. I often receive proposals of this type, that I could be “saving” so much by buying something. The money goes out up front, the savings are supposed to trickle back in these hard to quantify and use ways.
Re: Show HN: Is It Worth the Cost?
#14Re: Show HN: Is It Worth the Cost?
#15Some feedback:
- s/(one person)/(per person)/g - The "cover costs" section doesn't really make sense to me. For example, in one example, the breakdown says that I will burn $10000 extra, but that I will also cover costs with 23 hours of use. How does it know how much use it will take to cover costs? How does it know how much profit is generated per hour of use? Am I misunderstanding something? - It would be nice if the formula used was displayed in small text or in a tooltip or something.
Re: Show HN: Is It Worth the Cost?
#16It's not just the cost of an employee salary per hour... Is the opportunity cost of everything that employee could have instead done.
After all it isn't as though with more money you can just immediately get more fully ramped sophisticated employees to add value... All of that is complex.
Re: Show HN: Is It Worth the Cost?
#17What's this type of calculator often misses is how nuanced and complex is to estimate the cost of employee time. It's not just the cost of an employee salary per hour... Is the opportunity cost of everything that employee could have instead done. After all it isn't as though with more money you can just immediately get more fully ramped sophisticated employees to add value... All of that is complex.
Re: Show HN: Is It Worth the Cost?
#181) Brand reinforcement/damage.
This one is really hard to quantify, but can mean the difference between the life, or the death, of the corporation. If the tool we choose causes some damage to the brand (like not giving us the ability to display the brand in an appropriate manner), or introduces a brand-damaging problem (like causing a particular kind of service to have an extra step or two, or even amplify customer pain), then there could be issues.
On the plus side, it could also significantly fortify a brand, by doing things like having the brand appear in places that were disregarded, or considered "out of reach," or it could amplify the advantages of a brand-connected service.
Branding is a "dark art" to many literal-minded folks like engineers, but it is unbelievably valuable. It should always be considered, when thinking about things like this.
This morning, I had this demonstrated to me in a visceral manner. I made an order yesterday, and asked for expedited delivery. When I made the order, it said the expedited delivery would arrive today, but when I received the confirmation, it said the order would arrive tomorrow.
Sound familiar? Amazon is notorious for this nasty little trick. Most of the time, it's Prime Delivery, which means we don't really have much room to complain.
It wasn't Amazon. I won't name the corporation, but it is one that is synonymous with extremely high (arrogant, even) quality.
This silly little trick, with a cheap, third-party item, caused brand damage with a loyal customer that has spent six figures with them. I won't drop them, and the world won't stop turning because I won't get my item until tomorrow, but the simple fact that they did the "shipping bait and switch" on me, means that I'll never use them again for this kind of purchase.
That's brand damage.
To add insult to injury, when I tried contacting them about it, I had to run the gauntlet of what I call the "AI Picador," which throws as many roadblocks as possible in your path, before allowing connection to a human.
This workflow ensures that I will be steaming mad before I get to the human, and it's all I can do to avoid venting to them (it isn't their fault -it's their bosses').
2) Staff morale.
Will bringing in the service reinforce or damage staff morale? It may help folks do their jobs a lot easier (good), or it may result in a lot of folks losing their jobs (bad, or very bad, depending on many factors, like how the layoffs are done, and how the folks that remain are treated).
3) Dependence/Addiction
If bringing in a dependency ties us to a corporation/language/toolset, is that good or bad? It may be quite good, if it's a good service, and a good corporation, but it could also be incredibly bad.
Re: Show HN: Is It Worth the Cost?
#19This seems really flawed. Let's plug in numbers. This says that if a service costs 125$/month/employee and I have 1000 employees ($125000/month) I will save ~5 million a year. However a service costing 1.5 million at such a company has other costs. Namely that a product that costs that much almost always needs an in house support team. I have never seen the case where an expensive product also didn't need 2-3 people…
> PagerDuty for example doesn't save people any time, it just sends alerts.
Have you tried building a pagerduty in house? That is literally the time save. The "value of pagerduty" is still measured the same way as any other tool.
Do I build it custom in house? Do I pay someone else a modest amount?
That is what this tool is doing and is geared towards startups who make this decision very regularly. It's got 5 question boxes - of course, there's no way it's going to cover an enterprise consideration that needs 3 analysts to decide whether buying that SAP module is really worth $3mm/year.
Someone made a free tool and you're complaining about it as if it shouldn't exist. Very unsupportive.
Downvoted.
Re: Show HN: Is It Worth the Cost?
#20Add "One-time payment" option to the cost of the service.
This could be used to decide if you allocate resources to implement a new feature in an internal system.