[Sigia-l] Freelance IA consulting: Discovering the cost of do ing business

[Victor Lombardi]

I would so much like to agree with you, but the behavior that has allowed 
me to stay in business over the past year points to other conclusions (and 
it is, to a large extent, a reflection of our current economy).

There's simply not enough time during the new business process to make an 
argument displaying the value of what we do, we're too busy convincing them 
we can create the product better than our competitors.

Also, this whole thread is mixing the value of design with economics. With 
our clients it's much more about economics: they look at two similar 
resumes with two different price tags and simply choose the lower price.

I'm working from the point of view of a 300 person company, but a recent 
conversation with a competitor from a 5 person company (with whom we bid 
against for the same work) revealed we had the same approach; it was just 
easier for him to lower his prices.

Erin wrote "There is a going rate that some things cost - give or take a 
bit. It is
important to find out what that fee is and stick to it. "  We have to 
remember this changes with the market environment. In the 1990's we could 
charge very high rates but today we can't. Again, I think this is an 
economic issue and we shouldn't let it bother our gung-ho humanitarian hearts.

Have a great weekend! :)

At 6/7/2002 -0400 05:48 PM, David R. Austen wrote:
>Hello, Victor:
>
>I appreciate your response and I take your points. (I am going to try
>to continues to steer this in the direction of CDB.)
>
>First, I'd say we are already taking on enough risk ( in many, many
>different ways) without adding an additional damaging factor:
>establishing prices so low that we cannot sustain our careers and
>businesses by charging that little.
>
>Wouldn't it be better for us to have this kind of reputation:
>
>"You might possibly find an IA who will work for as little as $, but
>if you want quality IA you better be prepared to spend $$. You get
>what you pay for with IA. Don't try to cut corners. And never insult
>an IA if you want real enthusiasm. You're not buying widgets."
>
>And how about developing repeat business in other ways:
>
>1. Exception customer service. 2. Exceptional quality. 3. Keeping up
>to date with the latest IA research. If we sell on the basis of
>**pricing** strategies there will always be somebody able to lure away
>your clients. Keep the focus on 1,2,3 and your client will be less
>likely to stray, methinks.
>
>Complex work? It would take longer and more money would change hands.
>Should we really consider lowering our rates for some jobs because
>they are easier to accomplish? I'd never suggest that to my local
>mechanic when he does a job like my brakes, a job that is simple
>enough that I could do it myself. He has one hourly rate for his
>labor.
>
>(I won't suggest set rates, yet you may have good idea for a future
>thread on pricing: categories of services that may have different
>rates)
>
>I would like to suggest that when the client sees we have performed
>well on one job the client will be likely to offer a more crucial, and
>important, and prestigious job the next time. They may think that a
>bigger contract is enough reward, without offering us higher rates.
>
>So would I then ask the client for a higher rate at the same time I am
>rewarded a larger, more prestigious project contract? Might seem a tad
>bold. And reward is the verb clients would be using.
>
>I also would not want that client to remember that once, when I was
>"hungry enough," I would agree to do IA for as little as $.
>
>
>Warm regards,
>
>
>David
>
>http://zillionbucks.com -- Web hosting for the creative industry
>
>Friday, June 07, 2002, 4:52:32 PM, you wrote:
>
>
>VL> The scenario might be more complex. For example, say you have one
>VL> client



Victor Lombardi
http://www.noisebetweenstations.com/
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