- Green Gecko
- Joined in 2008
- Location: Sussex
And I just got this from Brennan Dunn who is worth reading: https://doubleyourfreelancing.com/start ... -business/
Hime wrote:I have no idea about the industry you're in GG but I've always used people both privately and professionally based mainly on reputation. Having someone that you know will do the job you want done without hassle always works out cheaper.
Fabrication/Machining/Signage. I may be wrong but iirc you have been in a position with a good amount of resources, and absolutely yes, doing something expediently and with guaranteed quality is a value, not just a price component. I imagine therefore that you were a good client to work for, because there is low possibility of being paid less than you're worth, or being refused payments or not paid at all. Concerning reputation, I have never, ever heard of someone even saying yet alone winning a job because someone said, "That's great but I know someone who can do this cheaper." What is good about cheap? It is normally always worse. Triple constraints of project management / cost triangle etc. So I have converted leads into winning bids because I am known for quality, and not using the cheapest materials, or even for not being cheap. And it's on that same basis that referrals are made and reputation brings the supplier to someone like you. I really doubt that person had a reputation for being cheap, someone can be expensive and still be good value.
It's hard when faced with so much competition that the easiest solution to compete (but not a solution at all and a very good way to fail) seems to be to price as low as possible.
I actually think I picked this up from a business mentoring sign at Barclays of all places.
At the end of the day, nobody wants to buy a load of gooseberry fool. And quite often that is what you get for peanuts. Far more people understand than novice businesspeople realise that value is a basic tenet of expensive products, as well as cheap ones. The point is that value is not intrinsically equal to price, it's a personal assessment made by the customer based on the proposition. There are many other factors and it's important to target those to build a trusted brand and prevent your life from becoming far more difficult than it needs to be.