Dienstag, 6. März 2012

The Price for profit and sanity

Here's a good post from the Small Business Blog by BizLaunch on how to figure out what prices to quote customers. The original post can be found here.

Small business owners should quote services using ‘good, fast or cheap’ matrix

Afraid to stand up to that pushy customer and risk losing the job, many entrepreneurs agree to supply their wonderful services for an unrealistic mix of money, quality and time.

Charging for services can be tricky, especially if you’re running a one-person show and typically earn by the hour because every customer wants the job done ‘good, fast and cheap’.

You’ve likely heard this one before.

The customer wants high quality work from you (so they can look good to their boss) to be completed in a very short time (because they failed to plan ahead) for very little money (because they failed to establish adequate budgets).

Next time you’re asked to quote, present the words ‘good, fast and cheap.’ Tell them they can have two.

For example, if your work must be ‘good and fast’, explain to your customer how you must displace other paying customers, work late into the night, miss out on family time, skip meals and chain yourself to the desk. You may be willing to do all that for a premium rate.

If they want it ‘cheap and good’ – guess what? It won’t be done quickly because you must first attend to other, better paying jobs that are already scheduled for completion. Lower-paying work is done during off-peak hours whenever you can get to it and will therefore take longer to finish.

‘Fast and cheap’ delivers a result that won’t be very good. Without the customer investment of sufficient production time and adequate budget, quality will suffer because you must rush. In fact, you may opt to preserve your good reputation by declining such work, or referring a colleague who is willing to do it.

You get the idea. Customers will always demand good, fast and cheap together; but, time, money and quality are opposites.

Boost your bucks, reduce your stress and protect your reputation by taking reasonable control of such customer expectations. Your work is worth it.

1 Kommentar:

  1. Dear Anke, that's a very sensible point of view! It always amazes me how people are willing to pay more for "good and fast" in other domains, but somehow they miss that out when comes to translation...