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Is that a wolf or a dog in your logo? Actually, it’s neither. It’s a coyote. The Coyote Business Model philosophy maintains that low overhead is the key to the ability of small business to adapt, achieve excellence, and remain competitive in today’s business world.
The wolf is considered a powerful animal. It’s large and requires large game such as elk, deer, moose, or bison. Although the wolf can hunt alone, it regularly hunts in packs, which include a pair of mates, offspring, and other unmated wolves. The wolf needs large expanses of uninhabited land to be able to have enough game to support the pack.
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The wolf isn’t able to easily live close to man. The requirements of lots of land and big game equals high overhead. Consequently, the wolf’s habitat has shrunk over time. Now the wolf is restricted to just a few rugged, rural areas of the country.
In contrast, the coyote isn’t considered powerful, at least not compared to a wolf. The coyote is much smaller in stature and eats much smaller game such as rabbits, mice, birds, fish, insects, reptiles, wild fruits and berries, ground squirrels, and other rodents. There have even been cases where coyotes have raided melon patches. It typically hunts alone to catch small prey, but can hunt with others to catch larger prey such as a small deer or pony.
It doesn’t require large expanses of uninhabited land like the wolf does. The coyote is adaptable enough to live close to man. In fact it’s even able to survive in suburban areas. The coyote’s requirements give it much less “overhead” than the wolf. It has expanded its territory over the years. In the 1800’s, they were primarily in the Great Plains and western states. Now they are in every state in the union except Hawaii.
A typical Information Technology Service company will have an office or storefront. There’s usually an office staff including clerical and sales positions. Of course there are technical positions as well which can include many specialists such as Microsoft, Novell, Unix, or Cisco specialists, web designers, cable installation technicians, telecommunications specialists, programmers, etc. They sell equipment and carry a large inventory. There’s usually a significant amount of advertising as well.
All of these factors mean high overhead that results in an hourly rate of $100 or more and a sizeable mark-up on equipment. This is the “Wolf Business Model”. These IT companies can only service larger customers (similar to large game required by wolves) that can afford the higher expense. They are limited to metropolitan areas just like wolves are limited to large forests. The company is pretty vulnerable during a “dry spell”.
Vangor Computer Technologies does not maintain a storefront and only carries a small inventory. We keep a small staff consisting of two general practitioners. We rely on word-of-mouth rather than advertising. This way, we are able to have minimal operating expenses that get passed on to you, our customer. Our hourly rate is $60.00. When equipment needs to be ordered, we help the customer order directly from a reputable distributor, which keeps the cost of the equipment down as well. This is the “Coyote Business Model”.
We can service much smaller customers than other IT companies. We operate in a smaller suburban area although we have a few customers in metropolitan areas as well. Our low overhead also allows us to better withstand a slow period or downturn in the economy. If a customer has a need beyond our scope, we have a network of other reputable small companies that we can refer.
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