#service value

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It’s a fun time we are living in. Cost keeps going up and incomes don’t. So I will be the first to admit I like a good deal whenever I can get it,

 and I will even drive further and even wait things out to get deals.

But when it comes to selling a service or product it gets difficult for those trying to collect.

When we purchase at our local retailers, big chains or mom and pop stores. We don’t normally consider the cost that they had to dish out to bring in the product, promote it and the cost of the overhead to keep the product safe and stored for us to purchase something that is in good condition and easy to locate.

I find many people don’t seem to realize this about a service either. Both my sister and I are self-employed, so we have a lot of discussions about cost, billing and projects. We find that people don’t really understand the value of what we are providing. We try our best to give them a cost that will allow us to focus on their project, giving us the time to do a good job, but also in a timely manner. To feel free to have fun with the project and to help to cover our overheads. Even though we have home offices, we still need to cover our costs to run our business, otherwise we would not exist.

But too many people still seem to believe that a website should only cost $500 for a full 10 page site, with all the do dads, gizmos and sprinkles the net has to offer, and being self-employed we should be able to push this out in a week or two.

I’m going to let you in on a little secret here… To help keep the costs low for you, we need to take on other projects, it keeps us alive and keeps us creating with different ideas. A site can take up to 2 months to complete when you consider time for design, development, domain and hosting set up, propagation of domain name, email setups, client approvals, misc communications, revisions, etc. Now do you see how someone cannot live on 1 project a month at $500 and be on call 24/7?

Obviously the challenge becomes harder when there are fresh faces on the market trying to make a name for themselves working all hours of the day and night, charging next to nothing. Which can be fine in the short term, but creative burnout is right around the corner for those individuals.

My sister brought an interesting forum post to my attention that points out the problem with individuals like this, by charging un realistically low prices and working non-stop they are changing the mould of the industry, adding new variables to it that did not exist before. This may sound fine for someone who believes in the evolution of business (beat the low balers with new services), but it can also have a negative affect when people do not understand the value of a good web medium and want the lowest price and the fastest turn around. This will gradually bring the cost average down, which in return could mean we need more projects to stay afloat, which then turns into less time and quality going into projects so more can be taken on.