01/12/2022
💰Cheaper Isn't Always Better.🙅♂️ Why Do Seemingly the Same IT Services Cost Differently?⠀
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Pricing policy is very important for any business. When choosing the product or service, you may wonder, ‘How much should I pay for it? Is it worth that much money? Or should I find something cheaper?’⠀
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Healthy competition makes markets work better and improves product quality. But vending products and services at artificially low prices is a different story.⠀
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Read this article to find out why dumping harms both the company and the customer and why buying a pig in a poke may cost you a fortune.⠀
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👀Let's have a look at the example:⠀
You want to order a website design for your business and need experienced and reliable IT specialists. Well, isn't it enough to look through the portfolios of digital agencies or freelance web designers and choose the cheapest one? Sometimes it really works, but the probability of losing money and buying a product of unknown quality is very high.⠀
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Will it save you money in this case? Hardly at all.⠀
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At best, the website is to be redesigned, but some companies believe it makes no sense and will turn down such a job offer. Because creating a good project from scratch is better than paying twice for a cheaper and ineffective solution. ⠀
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Generally, that's how dumping works: low price and low quality. The price is reduced due to the low quality of the product instead of low cost production.⠀
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🤔When does low price not mean low quality?⠀
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Young professionals or startup companies usually offer quite affordable services. They are new to the market and want to gain experience and build a good reputation. They are more willing to work on big projects for less money than their more experienced colleagues provided there are longer deadlines or an extended test period. ⠀
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If you agree to such an offer, you should understand all the risks involved. For example, you will have to delay a product launch, because website development will take longer than you've expected.⠀
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Another factor affecting the cost is average pay and the location of specialists or a company. When choosing experts, you should consider wages and labour costs of that particular country.⠀
What factors affect the cost of IT services? ⠀
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📌There are several key factors that influence the price of IT products and services:⠀
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➡️Popularity⠀
If a company has a good reputation and is quite famous in the industry, the services provided will cost more than those of their competitors. ⠀
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➡️A working strategy⠀
The same services or projects can be offered in different ways. For example, a designer can offer you one logo design option or hire a whole team to write a powerful design brief, analyze your target audience, create a moodboard, develop sketches, and etc. ⠀
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➡️Expertise⠀
Experienced specialists work faster and better, but they are more high-paid than young specialists who have recently entered the labour market.⠀
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➡️Time and efforts spent⠀
If a large IT team worked on your project, efforts and time spent will increase the final cost.⠀
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➡️Additional expenses⠀
Besides paying employees, companies must provide them with social guarantees, grant vacation time, health insurance, sick leave, and pay taxes. Clearly, all that affects the final price of services and products.⠀
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➡️Area of specialization⠀
For example, web developers who specialize in creating online stores will complete a project related to this area faster and better than a company that develops promo websites.⠀
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➡️Deadlines⠀
The faster you need the product the more you have to pay. The logic is simple: if the work has to be done quickly, you will need more employees and time.
➡️Security audit⠀
If project security is important for you, it will also raise the final cost. Data security has a crucial role in the modern world, and this safety measure should be observed.⠀
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👨💻Basis33 offers professional IT services and the full potential of digital technologies for effective promotion of your website online. You will get a complete solution to any business task to ensure your business growth and strategic business development.⠀
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👀Are you interested and ready to start working with Basis33 right now?⠀
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📩Submit a request on the website www.basis33.com and we will contact you as soon as possible!