Summary of the Key Points
This article discusses the logic behind the price premium in China's enterprise software industry, particularly regarding ERP implementation. More than 20 years ago, ERP implementation consultants could earn 8,000 yuan per day—more than the cost of housing in Beijing at that time—the reason being that customers had no understanding of ERP and were paying for the "information gap" between their own knowledge and the consultant's expertise. Today, consultants only earn around 800 yuan per day, similar to the salary of a construction worker, because customers are now more familiar with ERP, and the information gap has narrowed, reducing the consultant's value to that of a mere laborer.
The core argument is that the premium for management software stems from the "information gap in隐性 knowledge"—customers are willing to pay for solutions to business problems they are unaware of, not just for the software's features. Software companies that want to charge higher prices must acquire the kind of hidden knowledge that customers need, rather than simply focusing on adding more features.
Breakdown and Interpretation
1. Why could ERP consultants earn 8,000 yuan per day back then? Customers were "ignorant" (not stupid, but inexperienced)
In the past, Chinese companies had little exposure to ERP and did not know what it could or couldn't do, nor how to implement it. For them, ERP was an entirely new concept. The value of consultants lay in their knowledge of how to set up the system, advance projects, and avoid common pitfalls. This information was scarce at the time, and customers were paying for the consultant's guidance through this unfamiliar process.
For context: housing prices in Beijing were less than 5,000 yuan per square meter back then, so earning 8,000 yuan meant buying about 1.6 square meters of housing per day. Today, a construction worker in a first-tier city earns around 800-1,000 yuan per day, which is similar to the consultant's salary.
2. Why has the consultant's salary dropped to 800 yuan now? The information gap has disappeared
Things have changed; customers can find information about ERP features, use cases, and best practices online, and IT personnel within companies often have experience with implementation. Consultants no longer provide as much value in terms of guidance. Their role has shifted to more practical tasks like system configuration and on-site debugging.
3. Hidden knowledge is the key to the premium: It's about solving customers' real problems
The article emphasizes that what really drives high prices is not the number of software features (which will eventually become common), but the consultant's expertise in addressing specific business challenges. For example, consultants should understand the unique issues faced by customers in their industries and how to solve them effectively.
The author provides an example: During a sales presentation, he did not focus on system features but discussed the industry-specific difficulties and solutions, which impressed the customers enough to sign a contract. This kind of knowledge is valuable because it addresses issues that are difficult for customers to find on their own.
4. Software companies should stop focusing on features and find information gaps that customers are willing to pay for
Many software companies struggle with poor sales, high prices, and unprofitable implementations. They try to compete by adding more features, AI, or faster delivery times, but these efforts are ineffective. A good software product (with a good user experience and few bugs) is essential, but it only gets you "at the table" without ensuring a higher price premium.
The real breakthrough lies in having information that customers are willing to pay for. For example, does your company have unique insights into industry-specific pain points or solutions that no one else offers? Can you help customers avoid common mistakes?
If not, you're just like a "senior construction worker"—capable of doing the job, but unable to charge a higher price.
5. The information gap is not about deception; it's part of normal business logic
The article clarifies that using the information gap to earn profits was never about deception. In business, having valuable information is a natural part of the value exchange. It's normal for people to pay for useful information. The key is to find new information gaps that customers need.
Conclusion
This article suggests that software companies should shift their focus from simply adding features to accumulating industry-specific knowledge and expertise. By understanding customer needs, problem origins, and solutions, they can regain the premium they once enjoyed. This principle applies to any profession where valuable, unknown information can create a competitive advantage.