The Quartz Effect

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Oct 22 / 9:52pm

Pricing - Reality Check

Reality

A client, not too long ago, came to me with a quote from another website company. This client has been with us for a very long time. We've done a lot of work with them and their online presence is much better for it.

They told me that this provider was in London. OK no problem there. London is a great city. They told me that they'd been quoted some upgrades, the same upgrades that I'd quoted for them just a month earlier, and the prices were quite reasonable. So, I asked them to send me the pricing and I'd see what I could do, maybe price match, who knows.

I had prepared a quote in several pieces that came down to 3 deliverables at a little over £1k in total. The quote they sent me from the London designers was for £460.

Now, here's what I've come to realize. There are 2 scenarios, well, maybe 3 that can produce differences in pricing. And let's just assume it's a lower price.

1. The client goes and talks to another reputable firm and the quote is slightly less. In this case, our clients invariably decide that the pain of switching isn't worth it.

2. The client is not comparing apples to apples. They think they're getting a-z, but they're only getting a-e and they've forgotten to make sure that f-z are actually on the bill of goods. Thus, you pay less and get less.

3. The company is actually sending the work to India or they, in fact, have no idea what they're doing. This, unfortunately, was the case with this client and their £460 quote. It took about a month, but one morning this week I got a call from my client. When I picked up the phone, all they said was, "Go ahead, say it." I couldn't summon my inner fool to say, "I told you so."

The fact is, when the pricing discrepancy is large, there's no way that the other provider can actually do the work that much cheaper. That is, without outsourcing or simply delivering a LOT less website for the money. It's gotten so bad that I can smell it when a company is working with cheap foreign labour. And 90% of the time, something goes wrong. The project takes twice as long. The vendor disappears. Or the end result is simply nothing like what you'd spec'd out and they want more money to do the job right.

Avoid this trap. When 2 quotes are drastically different, get more of them. 2 data points isn't a pattern. Buyer beware.

If you want to discuss this further, drop me an email at info@quartzmarketing.co.uk       

                                                                        www.quartzmarketing.co.uk

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