Comparing our prices in many of the project quotations that we make in comparison with the competing quotes that many service providers often shows that our rates are higher than many other quotes. This document has the objective to discuss this phenomenon and attempt to explain why this is often the fact.
Realistic vs Relative pricing
For service vendors who often have lower per-project real capital investment (materials and other non-skill resources), there is often the temptation to price below what it realistically costs them to deliver a finished project with the main objective of undercutting other bidders and winning a given project by enticing project owners with unrealistic, but competitive pricing. In the short term, some vendors may be able to provide relatively satisfactory services at an operating cost to themselves, but in the longterm, this practice is not sustainable and there is a definite loss in the quality or enthusiasm and ability to adhere to the agreed scope of a given project.
On the other hand, vendors who are realistic about the cost of their skills and the time that it takes to plan and execute the production and delivery of a high quality web development and user interface development project come-out on top. Although such service providers may not win all bids, they remain true to the true cost of providing quality web projects, and are much less likely to stray from or abandon web projects.
Project quality commitment
Our pricing model ensures that the cost of delivering a project is realistic in terms of the time and other resources that are necessary to delivery a finished project that adheres to the scope document and contract without the need to re-scope or to stray from the agreed project details. In all eventualities, we keep our customers informed of all significant developments as we go through the various steps of producing web design and production projects to keep them involved and in reasonable control of the design and production process.
Occasionally, especially in periods of low demand for our services, we are able to take and price project below our normal costs to reward clients whose project schedules are flexible enough to conform to our workload and schedule. Similarly, we owe it to every current and prospective customer to truthfully decline a project (despite the obvious temptation) that cannot be delivered on schedule without adversely affecting other scheduled projects.
Quality over cost
It is undeniable that a low-priced quotation for a project is often attractive at the first glance... however, every analytical client with a longterm view of the quality of work and support is aware that unreasonably priced quotations often have a secondary cost that balances the low cost of 'implementing' the project, only to be stuck in a cycle of corrections and unreasonable maintenance costs.