It really depends on the type of service and the industry. Design cost is necessarily included in the product cost either directly or indirectly. Impossible to answer the question without knowing more details.
I think that this philosophical thinking can get you in real trouble if you don't understand your targeted market and the value of what you are delivering! You can buy a Hamburger just about anywhere these days but understanding "you get what you pay for." You can buy a bargain basement 'burger at the fast food chains for under $2.00, or buy one at a high end, dress code required restaurant starting $20.00 The difference is delivered quality, service and the customer expectations. It is important to recognize that we now compete for business in a world-wide market and that in order to be successful, must deliver services that offer value to our customer-base that exceeds our competitors. Value does not always equate to lower cost per unit out-the-door but increasingly translates to Total Cost of Delivered Quality per unit after delivery to their customer.
My company is definitely not the low cost purchased price leader in our world-wide and domestic targeted market , but by being able to deliver dock-to-stock, validated process controlled product to our our customers, we have reduced additional costs at their facilities for receiving inspection,rejection documentation including: Non-conforming Reviews, Material Review Board dispositions, RMA documentation, and Return Shipping & Handling, all of which have huge additional cost impacts beyond the original purchase price which equates to lower delivered customer cost to their end- customer.
Our customers recognize this added value and understand the "you get what you-pay for" philosophy but we also recognize that in order to remain competitive, we must continually improve our technology and staff training to maintain our "value" edge over our competitors.
Take really hard look at your delivered quality value and review if you as company, are really delivering "you get what you pay for". If you're not, you are probably already in trouble with your targeted market without having recognized it. If you're in a "Me Too" market (like the low cost 'burger joints" then understand what differentiates you from your competitors. Measure your delivered Key Process Indicators (Called KPIs) and try to understand how your competitor's are measuring up against you.
I offer free consultation to many potential partners, especially startups. I do stress the value of the consultation and to come prepared with questions, requirements. Some do, some don't. Some are grateful for the guidance and return a note of gratitude. Others, take you for granted, not even a thank you. Presonally I will give the same level of service I would give for those hours that I would give to a fortune 100 client.
Yes I do Believe in that but I still to this day I am always trying to get a better deal and it keeps on biting me in the ass every time when will I learn?
You get what you pay for if you review the material or services carefully and have all in your contract properly outlined ... based on 50 Years of experience and never been sued ... John
Yes in most cases i do agree with that phrase, however I feel it is important to do your research and see what the company or people your dealing with are all about as sometimes you pay to much for what you get. Such as some brands are just as good as others or possibly even better and you end up paying more for a name that actually has no bearing on quality. It never hurts to ask for it to be less, the answer is always no if you don't ask.
It would all depend on the project. Many companies offer excellent free services to obtain business on the other end and stand out from there competition. The phrase you get what you pay for is generally when it comes to a specific product you are purchasing in which case I believe in the statement. But companies that offer a Value Added prop do those things to separate from the pack... Just my 2 cents...
So, many of my clients are non-profits, and so I often adjust my fee proposal to respond to their budget and capacity. But I use a good technique to do this - I provide a proposal that identifies what my full fee would be, and then at the breakdown of the fee for each part of my services, I have an additional line item "In-kind donation" where I offer a credit or a waiver for a certain portion of the fee. This helps me state the full value of my work, and what I am willing to offer as a discount. I feel that this is a better approach to let people know that they are getting "better than what they are paying for" :)
Join Your Local
Business Network
Connect & get quality referrals
from Small Business Owners
Answers (1-10)
Price, quality, service. Pick two.
It really depends on the type of service and the industry. Design cost is necessarily included in the product cost either directly or indirectly. Impossible to answer the question without knowing more details.
I think that this philosophical thinking can get you in real trouble if you don't understand your targeted market and the value of what you are delivering! You can buy a Hamburger just about anywhere these days but understanding "you get what you pay for." You can buy a bargain basement 'burger at the fast food chains for under $2.00, or buy one at a high end, dress code required restaurant starting $20.00 The difference is delivered quality, service and the customer expectations. It is important to recognize that we now compete for business in a world-wide market and that in order to be successful, must deliver services that offer value to our customer-base that exceeds our competitors. Value does not always equate to lower cost per unit out-the-door but increasingly translates to Total Cost of Delivered Quality per unit after delivery to their customer.
My company is definitely not the low cost purchased price leader in our world-wide and domestic targeted market , but by being able to deliver dock-to-stock, validated process controlled product to our our customers, we have reduced additional costs at their facilities for receiving inspection,rejection documentation including: Non-conforming Reviews, Material Review Board dispositions, RMA documentation, and Return Shipping & Handling, all of which have huge additional cost impacts beyond the original purchase price which equates to lower delivered customer cost to their end- customer.
Our customers recognize this added value and understand the "you get what you-pay for" philosophy but we also recognize that in order to remain competitive, we must continually improve our technology and staff training to maintain our "value" edge over our competitors.
Take really hard look at your delivered quality value and review if you as company, are really delivering "you get what you pay for". If you're not, you are probably already in trouble with your targeted market without having recognized it. If you're in a "Me Too" market (like the low cost 'burger joints" then understand what differentiates you from your competitors. Measure your delivered Key Process Indicators (Called KPIs) and try to understand how your competitor's are measuring up against you.
I offer free consultation to many potential partners, especially startups. I do stress the value of the consultation and to come prepared with questions, requirements. Some do, some don't. Some are grateful for the guidance and return a note of gratitude. Others, take you for granted, not even a thank you. Presonally I will give the same level of service I would give for those hours that I would give to a fortune 100 client.
Yes I do Believe in that but I still to this day I am always trying to get a better deal and it keeps on biting me in the ass every time when will I learn?
You get what you pay for if you review the material or services carefully and have all in your contract properly outlined ... based on 50 Years of experience and never been sued ... John
Yes in most cases i do agree with that phrase, however I feel it is important to do your research and see what the company or people your dealing with are all about as sometimes you pay to much for what you get. Such as some brands are just as good as others or possibly even better and you end up paying more for a name that actually has no bearing on quality. It never hurts to ask for it to be less, the answer is always no if you don't ask.
It would all depend on the project. Many companies offer excellent free services to obtain business on the other end and stand out from there competition. The phrase you get what you pay for is generally when it comes to a specific product you are purchasing in which case I believe in the statement. But companies that offer a Value Added prop do those things to separate from the pack... Just my 2 cents...
Absolutely
So, many of my clients are non-profits, and so I often adjust my fee proposal to respond to their budget and capacity. But I use a good technique to do this - I provide a proposal that identifies what my full fee would be, and then at the breakdown of the fee for each part of my services, I have an additional line item "In-kind donation" where I offer a credit or a waiver for a certain portion of the fee. This helps me state the full value of my work, and what I am willing to offer as a discount. I feel that this is a better approach to let people know that they are getting "better than what they are paying for" :)