Calculating the Cost of a Service

Calculating the Cost of a Service

A friend of mine sent this to me. I changed it to web designer, it applies to all of us…

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 A CONVERSATION ABOUT PERCEIVED VALUE:

A customer asked a me friend how much it would cost to do this project.

I gave him a proposal: $4500

The customer responded: That’s seems really high.

I asked: What do you think is a reasonable price for this job?

The customer answered: $2500 maximum

I responded:  Ok, then I invite you to do it yourself.

The customer answered: I don’t know how to.

I responded:  Alright, then how about for $2500 I’ll teach you how to. So besides saving you $2000, you’ll learn valuable skills that will benefit you in the future.

The customer answered: Sounds good! Let’s do it!

I responded: Great! To get started, you are going to need some tools. You will need a domain, web host, computer, photoshop, illustrator and more software including elementor, SEO knowledge, hi-speed internet connection, etc..

The customer answered: But I don’t have any of those tools and I can’t justify buying all of these for one project.

I responded: Ok. Well then for an additional $300 I can rent my system to you to use for this project…when I’m not busy with other projects.

The customer answered: Okay. That’s fair.

I responded: Great! We will start the project on Monday.

The customer answered: I work Monday through Friday. I’m only available on the weekends.

I responded: If you want to learn from me then you will need to work when I work. This project will take 2
Weeks, so you will need to take a few weeks off work.

The customer answered: That means I’m going to have to sacrifice my pay for 2 weeks or use my vacation time!

I responded: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.

The customer answered: What do you mean by that?

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I responded: Doing a job completely from start to finish includes time spent to plan the project, design mock-ups, travel time  and time for meetings and phone calls amongst other things. That’s all in addition to the actual project itself.  And speaking of mock-ups, when we start on Monday I need you to have a basic site map and design at 6:00am.

The customer answered: At 6am?!! My work day doesn’t usually start until 8am!

I responded: Well then you’re in luck! My plan is to start on the actual design in a sandbox by 8am. But to do so we have to start at 6am to get everything ready so we can have a cohesive brand and direction.

The customer answered: You know, I’m realizing that a lot more goes in to a job than what a customer sees in the finished project. Your proposal of $4500 is very reasonable. I would like you to handle the project.

CONCLUSION:

When you pay for a job, especially a custom job, (whether it’s a physical project or digital project) you pay not only for the material and the work to be completed. You also pay for:

✔️ Knowledge
✔️ Experience
✔️ Custom Skills
✔️ Tools
✔️ Time to plan
✔️ Time to prepare
✔️ Professionalism
✔️ Work Ethic
✔️ Excellence
✔️ Discipline
✔️ Commitment
✔️ Integrity
✔️ Taxes
✔️ Licenses
✔️ Sacrifices
✔️ Liabilities
✔️ Insurance

If you request a proposal for custom work to be done, please don’t disrespect a service provider by trying to get them to lower their prices.

If their proposal exceeds your budget, there’s nothing wrong with getting other proposals.

Just remember.. you get what you pay for.

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🏼 SERVICE PROVIDERS: Know your worth and be confident in it.

1f449 - Calculating the Cost of a Service

🏼 CONSUMERS: Recognize their worth and be respectful of it.

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