Perceived Value VS True Cost. - A Long but good read for any business owner.
I do not remember where I saw this, but it is a good read.
A customer asked me how much I would charge to decorate a venue?
My reply: $1500+ all depends
Her reply: WOW, just a couple tables, backdrop, balloons, centerpieces, etc? Why so much?
My reply: Well, this estimate also includes for the non productive factors.
She questioned: What is nonproductive factors?"
My reply: Just the usually things like taxes, insurance, rent, gas etc.
I asked: How much do you think it should cost?
She responded: Around $800 at the most... It's just tablecloths, balloons, panels,flowers and a fairly simple job right?
I calmly said: Okay ma'am, for $800 I invite you to do it yourself.
She said: But.... I don't know how to.
I replied: Okay, for $800 I'll teach you. So besides saving you $700, you'll get the knowledge for the next time.
It seemed right to her and she agreed.
I continued: To get started you will need tools, ladders, steamer, backdrop frame kits, air pump etc...
She said: But I don't have all this type of equipment and I can't afford to buy all of these things just for a One time Event.
I offered: Okay then, for an additional $200 I'll rent my equipment to you.
Okay, she says.
I replied: So on Tuesday I will be available to start teaching you.
She said: But I can't on Tuesday I only have time today.
I said: I'm sorry ma'am, but Tuesday is the only day this week that I will be available to teach and rent you my equipment. The rest of the week is already scheduled for other customers.
She was frustrated: That means I gotta rearrange my schedule and sacrifice my whole Tuesday?
I said: That is correct ma'am!
I will also provide you with a list of all the materials you will need to go to the store and shop online and the Balloon Distributer to purchase for this job.
Also, loading of the van for your job will take place Tuesday morning around 6am. After the project is complete, all equipment and tools need to be prep, washed and reloaded back onto the van.
She asked in disbelief: At 6am???
Nope! Way too early for me! So much work just to do decorate!
You know what, I've been doing some serious thinking and I've decided that it would be best if you just went ahead and did the job for me. $1500 seems fair now and I'd rather it be done right by true professionals.
The moral of the story for any buyer:
When you hire a professional to do a job, you're not only paying for the labor and material being used. It also includes:
Knowledge
Experience
Tools
Services
Punctuality
Accountability
Professionalism
Accuracy
Guarantee
Sacrifices
Safety and security
No one can denigrate other people's work by judging prices.
Only by knowing all the elements necessary to complete a certain project can you estimate the true cost.
A customer asked me how much I would charge to decorate a venue?
My reply: $1500+ all depends
Her reply: WOW, just a couple tables, backdrop, balloons, centerpieces, etc? Why so much?
My reply: Well, this estimate also includes for the non productive factors.
She questioned: What is nonproductive factors?"
My reply: Just the usually things like taxes, insurance, rent, gas etc.
I asked: How much do you think it should cost?
She responded: Around $800 at the most... It's just tablecloths, balloons, panels,flowers and a fairly simple job right?
I calmly said: Okay ma'am, for $800 I invite you to do it yourself.
She said: But.... I don't know how to.
I replied: Okay, for $800 I'll teach you. So besides saving you $700, you'll get the knowledge for the next time.
It seemed right to her and she agreed.
I continued: To get started you will need tools, ladders, steamer, backdrop frame kits, air pump etc...
She said: But I don't have all this type of equipment and I can't afford to buy all of these things just for a One time Event.
I offered: Okay then, for an additional $200 I'll rent my equipment to you.
Okay, she says.
I replied: So on Tuesday I will be available to start teaching you.
She said: But I can't on Tuesday I only have time today.
I said: I'm sorry ma'am, but Tuesday is the only day this week that I will be available to teach and rent you my equipment. The rest of the week is already scheduled for other customers.
She was frustrated: That means I gotta rearrange my schedule and sacrifice my whole Tuesday?
I said: That is correct ma'am!
I will also provide you with a list of all the materials you will need to go to the store and shop online and the Balloon Distributer to purchase for this job.
Also, loading of the van for your job will take place Tuesday morning around 6am. After the project is complete, all equipment and tools need to be prep, washed and reloaded back onto the van.
She asked in disbelief: At 6am???
Nope! Way too early for me! So much work just to do decorate!
You know what, I've been doing some serious thinking and I've decided that it would be best if you just went ahead and did the job for me. $1500 seems fair now and I'd rather it be done right by true professionals.
The moral of the story for any buyer:
When you hire a professional to do a job, you're not only paying for the labor and material being used. It also includes:
Knowledge
Experience
Tools
Services
Punctuality
Accountability
Professionalism
Accuracy
Guarantee
Sacrifices
Safety and security
No one can denigrate other people's work by judging prices.
Only by knowing all the elements necessary to complete a certain project can you estimate the true cost.
