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"There are two kinds of companies: Those that work to try to charge more and those that work to charge less. We will be the second." Thats works well when your
by kayoone 13y ago
"There are two kinds of companies: Those that work to try to charge more and those that work to charge less. We will be the second."
Thats works well when your prices are based on 3rd party prices and you can optimize your business to keep your margin. But, for instance, a service oriented company, or a freelancer, will usually try to improve his/its skills and experience to charge more because the endresult is worth it.
- westi 13y agoIn the case of a freelancer your are optimising your prices so that you can charge more while optimising your skills/performance so people need less of your time. You can make money by working more effectively and efficiently while still charging less for the same "product".
- kayoone 13y agoBut that wouldn't change my bottom line at all, i would just work faster/more and need more clients. My clients usually are fine with paying more because they feel that my experience has value vs the next guy who just cobbles together their application without thinking much about maintenance, architecture, testing etc. I might even be slower than that guy.
- westi 13y agoIt can easily change your bottom line. If you can do the task in a quarter of the time and charge half as much for it then you can double your bottom line.
- kayoone 13y agoWell im not convinced. For one, better skills/more experience doesn't necessarily make you faster, it might even make you slower because you put more effort into things others simply ignore, but the quality will be higher. Anyway, i see your point, i just don't think it translates into reality all that well. Not for longterm projects at least, which are hard to estimate anyway.