Reply to Re: Your Guess for Project Cost?

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Posted by Steve King on 10/10/05 21:48

"Steve Guidry" <steveguidry@earthlink.net> wrote in message
news:5UA2f.12739$QE1.6636@newsread2.news.atl.earthlink.net...
> In my experience, how much you charges, and whether or not you believe
> that
> $1k per minute is a viable rate or not is more a reflection of your
> customer
> base than your equipment list or even your skill set. Other factors like
> the length of time you've been in business and how long you've been in
> your
> particular market, and your age seem to play a part as well.
>
> Here's what I mean :
>
> If you're a seasoned pro, who has paid your dues, then you're more likely
> to
> be able to grow or migrate your customer base up to that level. You've
> built a list of customers who keep coming back because of the quality your
> work represents. You and your customers speak the same lingo, and are
> generally comfortable with each other's work styles. You're a "known
> quantity" to them.
>
> On the other hand, if you're fairly new, and just getting your customer
> base
> established, then you're likely to think that guys like King, Jandro,
> Davis
> (and your truly) are dinosaurs with an outdated view of what things should
> cost. You're selling cost to your customers because that's what you've
> got
> to sell. Heck, I've been there, done that. It _does_ work, but it's a
> short-term business plan. As soon as you can do so, you're best advised
> to
> shed all those leaches who want something for nothing. Refer them to your
> newbie competitor, and try to poach a high-value customer or two from one
> of
> us.
>
> It's the way of the biz : everyone starts out competing on price, and
> ends
> up competing on value.

I agree. That is the way it goes for most of us. I've been fortunate to
start a couple of enterprises on the shoulders of good clients who were
aware of my work in associated fields, so I didn't have to low bid as much
as might have had to otherwise. This has been an interesting thread--to see
how others look at the business side of the business.

Steve King

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