Matt Vaadi says the U.S. payroll market has roughly 16,000 firms, so saturated that being local isn't a real differentiator. What matters is understanding each client's specific needs and whether you can actually deliver what they want, like a local office to visit weekly, without disrupting your operations.
There are 16,000 folks that process payroll in America, companies. And that means I always say anywhere I'm standing in the city, if I throw a baseball, I'll hit somebody that processes payroll. There's multiple payroll companies in our building. The first building we were in, same thing. We're in the same building with a national and another provider. Like, I mean, they're everywhere. And so what are you really doing to differentiate? And that's, that's the thing. But what's more important is what can help you to differentiate is actually understanding what the client needs better than anyone else and what that's going to mean to their business. And so is being local, is there any real value prop to that? Well, it depends on the client, right? Do they want to be able to swing by here once a week? We've got clients that come by our office, you know, do— did I ever forecast any clients coming by our office? Not really. And do we have the space that like where it's very impressive when they come by? Absolutely not. So, so we're not set up for that type of operation, but that's really important to them. And if that's what's important to them, and that's what— it's not going to disrupt our operations and it's not going to disrupt their operations, then wonderful.
