Chapter
Contract Preferences and Customer Intimacy
54:06 - 59:30 (05:23)
The speaker shares his preference for firm fixed price contracts over cost plus, based on experience working with the Department of Defense in Iraq. He also discusses the importance of a customer intimacy model in business.
Clips
The business grew after obtaining government contracts for training and security services.
54:06 - 55:20 (01:13)
Summary
The business grew after obtaining government contracts for training and security services. They were able to secure a no-bid contract to provide security for Paul Bremer during his time in Iraq.
ChapterContract Preferences and Customer Intimacy
Episode#29 Erik Prince - Inside The Rise and Fall of Blackwater
PodcastShawn Ryan Show
The key to success in business lies in either driving out every bit of waste through super efficiency or creating the next product innovation that everybody wants to buy.
55:20 - 56:38 (01:18)
Summary
The key to success in business lies in either driving out every bit of waste through super efficiency or creating the next product innovation that everybody wants to buy. Alternatively, businesses can focus on customer intimacy, becoming an integral part of their customer's process, like UPS does with logistics and product returns.
ChapterContract Preferences and Customer Intimacy
Episode#29 Erik Prince - Inside The Rise and Fall of Blackwater
PodcastShawn Ryan Show
The speaker prefers firm fixed price contracts over cost plus contracts as the latter incentivizes companies to increase costs.
56:38 - 59:30 (02:52)
Summary
The speaker prefers firm fixed price contracts over cost plus contracts as the latter incentivizes companies to increase costs. Despite the preference, he notes that the Beltway crowd tends to prefer cost plus contracts.