More or less? What should you pay for tech and marketing services?
Why is it that you can talk to 10 competing companies, explain your needs, and receive 10 totally different price quotes? Are you being taken advantage of or is there really something to be said about these varying prices?
As an Account Executive here at Tech Guys Who Get Marketing, it’s something I deal with quite often. I can’t even begin to express how many times I’ve heard the frustrations of potential clients in dealing with the differences in cost from company to company. Understanding these differences from a holistic standpoint is key to the success of your wallet as well as your business.
First of all, I will say to use your best judgement as there will always be the “bad mechanic” of tech and marketing to deal with. We all know “that guy” that tells us we’re low on headlight and turn signal fluid. I can recall one of my recent clients and her understandable frustration with another tech company. She reached out to their Account Executive and explained her needs in great detail. After this analysis, a payment was requested for that initial discussion and an additional payment was needed to produce a proposal.
Wait a minute. Pay? To see if I want you to take on the work? These situations are obvious ones to avoid and require us to use common sense, but what about the others? What about the companies that feel or seem honest, qualified, and have the experience required?
Many of us have seen the recent Allstate Insurance commercial with the young girl asking her father why they’re switching to another insurance company. The father replies that, “these guys are the cheapest,” and the young girl simply responds with, “why?” Again, why are the cheapest companies out there just that? This is the question that needs to be in the back of your mind when dealing with any low cost company. Always remember that a low price for the services provided could easily mean a low quality result.
When it comes to tech and marketing companies with higher pricing than their competition, it’s typically justified by the amount of experience and the caliber of results that they have under their belts. This is what many would call a higher perceived value, thus raising the demand of this value and the price associated with it. Have you ever noticed that the companies charging the most and doing so honestly are always the ones with the most new and returning clients?
Editor’s note: He doesn’t LOOK like a guitar maker, but he shows up when I google Paul Reed Smith. Seems legit.
As an example, being that I’m a musician, I know the reasons that I should pay more for a new guitar. I can easily spend $150 on a First Act electric guitar, but that could result in either a product that fails or something that will require numerous upgrades. On the other side of the argument, I can always just purchase a $3,000 Paul Reed Smith and know that I have product that I’ll be pleased with for years. The same statement can be made for technology and marketing services. Would you rather go for a low price that requires constant upgrading or would you prefer paying more for the needed peace of mind?
You see, in certain situations, it truly does make more sense to pay more, but I do still urge you to be cautious and aware. Before a tech or marketing company charges you, ask them what their previous accomplishments have been. What successes have they had in the past? What documentation can they provide to prove their value? If they have honest results, they’ll always be more than happy to provide this information. By being prepared and focusing on value over cost, you will see a return on your investment that will show you why it sometimes makes sense to pay more.