I was talking to a call center client today who was interested in purchasing mortgage modification data of homeowners, they wanted to first purchase 50,000 records, than after being satisfied with the data, they would purchase 500,000 records every three or four weeks. Sounds good right? The problem is they didn’t want to spend more than 1 cent per record, meaning for 50,000 they wanted to spend $500 and for the 500,000 $5000, they said they did not want to buy junk, they wanted quality data. I told them that it wasn’t possible for them to purchase quality data at 1 cent per record, the average cost of this data is around 5 to 6 cents per record, however due to our relationships with the large suppliers I could get them the 50,000 test file for $2500 (5 cents per record) and then the 500,000 for $12,500 (2.5 cents per record) and would prorate the first sale of 50,000 giving the additional 2.5 cents back to them. They said it was too much. I told them this was the best I could do for them, and if they found someone to sell them data this cheap it was going to be junk, a high disconnect rate and the data would probably be several years old.
I’m off to see the Wizard, the wonderful Wizard of Oz……..
Some days I feel like I am in a musical fairy tale, because some of the demands that clients make seem to come from the world of make believe and I often find myself clicking my shoes together under my desk hoping to wake up at home. This is not a new problem, especially among call centers, many of them want the crème of the crop, but don’t want to pay the premium price. They want champagne, but want to pay for beer, well like the old saying goes, you get what you pay for. If you but 1 cent leads, that is exactly what you are going to get, and in the long run it won’t save you any money, it might even cost you money. When you look at factors like calling disconnected numbers, paying agents to call those disconnected numbers you need to factor all of this in as part of the cost of that “cheap” data. At the end of the day it may not be any cheaper and may very well cause you to lose money. If you want quality data, be prepared to pay for it, it is well worth the cost.