Indirect costs are costs that are not directly accountable to something (e.g., a particular project, facility, or product).
In a recent blog post, Wes Trochlil of Effective Database Management addressed direct costs vs. indirect costs regarding association management software. The direct costs are clear—the amount spent on the software itself. The indirect costs, however, can quickly add up. A subpar AMS can result in wasted time, missed opportunities, staff headaches, etc.
A client told me she was having trouble with staff turnover, especially with younger staff. When I asked her about her technology, her eyes got big, and she said: “The last staffer who left me told me in her exit interview that she was leaving in part because the technology we had made her job so hard to do.”
His client’s experience is the very definition of indirect costs.
An AMS that appears as less expensive often costs more than a robust, fully functional product. Cheaper isn’t always better.