One day my son asked me how much do I charge to build a website. When I responded, he said “Wow, Mom, that’s a lot of money!” ($20 can be a lot of money for a ten year old.) I then began to explain to him about cost benefit analysis or cost versus value. That conversation inspired this post.
As a small business owner, we usually don’t have access to capital to blindly invest our money. We all compare prices of products and services in hopes to find the best deal. But one thing many don’t realize or take into consideration is that cost and value go hand in hand. The cost for a quality product or service is based on the value of that product or service.
My business offers a quality service and product and I know that my value is high. It isn’t just because I “value my work”. The value I am speaking of is the long term benefit of my services to my client. My value outweighs my cost.
Let me put this in terms that you can easily relate to. My photography services may seem to be at a high cost but the value of my photography will benefit a business owner more than the cost will benefit me. The money I make from one basic session will possible pay my monthly cell phone bill. The money a business owner can make from quality photography to use on marketing, website, and promotional material will greatly exceed that cost. I lose and the business owner wins.
Another example is website design. If a business owner was shopping for the cheapest web designer, they may find themselves updating the website soon after the job is done. They will discover that the design doesn’t fit their business model, isn’t appealing to their target market, looks just like their competitor’s, not grabbing the attention of site visitors, etc. A web design not done correctly can kill a business.
To prevent this, I recommend hiring someone that researches YOUR market, understands YOUR customers and YOUR brand. Also realize that this is an investment in your company therefore you should spend your money wisely. Always weigh the cost vs. value, it will save you money in the long run.
For more information about my branding, photography or web design services, contact me.