We are being conditioned to be the cheapest
In a recent conversation with someone, I realized we are being conditioned to be the cheapest.
Provide the cheapest products
Deliver the substandard service.
You see this in the first moment you jump on any social media platform’s business-related pages. People want the best possible service, in the quickest (sometimes impossible) timeframes, and don’t want to pay an arm and a leg (directly quoted) for it.
Based on the context of the above, let’s deconstruct it and discuss a few ideas around it.
By attempting to be the cheapest, you will always prepare a quotation to sign every transaction. You will most likely sign every deal, as you have managed to underquote the rest of the market. This is when the problems start to boil through the cracks in this plan. You need to work at a tremendous pace (running a lot of projects simultaneously) and use cheap labour (you had to use cheap labour because you could not afford A-level candidates). Once a project is finished, a client is most likely unsatisfied because you rushed with unskilled labour, and the client is angry and dissatisfied. Your intention was good, putting bread on the table, but you missed the single most important factor: superior value comes with a premium price.
People value what they pay for.
They will respect you more.
I know it feels counterproductive, but when someone receives something for free or at a below market-related price, they don’t appreciate it. When they pay a premium price, they see and understand the value of your work, and they appreciate and respect what you do.
When you sign up every single client to prepare a quotation for, you know your prices are too low. Not every client is your client. Generally, the clients not willing to pay too much are also your toxic clients because they expect everything for nothing. Keep your circle of clients to a group of respectful clients. When you surround yourself with toxic clients, they tend to become more. Like attracts like. It’s the rule of the universe.
Some further points to ponder while we are ending this chapter:
Value perception: Clients will most likely perceive your work as low quality when your quotations are below market-related prices. This affects their trust in your business.
Sustainability: The business cash flow will never be able to sustain itself when you always underquote for projects. There is a cost in doing business, and these factors need to be considered during the quotation process. By preparing quotes responsibly, you will ensure the long-term viability of your business. While competitive pricing is important, it's crucial to balance it with the quality and sustainability of your business to ensure long-term success.
Client relationship: Clients appreciate transparency and honesty regarding a premium price quotation. When we explain to them the work and pride that goes into a project, you will build a long-term loyal client. If the client still does not want to understand or declines the quotation, let it be. Maybe that is not your client.
