The dichotomy of service pricing

I saw an infographic the other day, a Venn diagram called good-cheap-fast.  It really hit a nerve.  We are always discussing whether to offer a cheap service or a quality service.  The customers of the cheap service always complain about quality and simply telling them “hey, we’re cheap, that’s what you get” just doesn’t cut the mustard.  We often get customers complaining about price too, and in times of recession who can blame them, but we are wrong to discount our prices in response to this pressure.

Nothing is Good, Cheap AND fast

You either offer quality, or offer discount, you can’t do both.  Let’s take an example: Sony only make quality, they are known for quality.  If you want Sony you have to pay the Sony price.  You might get a discount to a certain extent but it won’t ’e as cheap as the LG TV on sale at ASDA.  LG make cheap, you get what you pay for.  If you want cheap you buy LG from ASDA, and you don’t complian that it’s not as good as Sony.  You might wish it was Sony, and that’s fine, but you know you paid for LG and for the price, you accept it.

Well it’s the same in my line of work.  If you want good service from me then you pay a price something close to the rate card.  You don’t pay a price that’s remotely close to my crappy competitor, because let’s face it, if you knew their service was going to be as good as mine then you wouldn’t have bothered asking me to cut my price, you’d have just left.

Am I right?

Advertisements

About Jason

I am the Managing Director at Bar 2, father of 1 and brother of 2. Enjoy blogging, twittering and generally communicating on the internet, family time and working.
This entry was posted in business and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s