The Fast, Good, Cheap: Pricing Method
I was recently eating in a lcoal restaurant and they had the greatest sign hanging on their wall.
We offer three kinds of service:
Good - Cheap - Fast
You can pick any two:
Good service + Cheap = won't be Fast
Good service + Fast = won't be Cheap
Fast service + Cheap = won't be good
I was sitting there thinking about how this could be applied to so many things and did some internet research. The idea behind this, in the business world is called the Fast, Good, Cheap pricing method. Freelance Folder describes the pricing method as the following:
Good + Fast = Expensive
If a client wants good, fast work then of course we can put up our prices. We must put up our prices here because we have to postpone every other job we have, cancel appointments/meetings and stay up 24+ hours to get their job done.
The advantage here is that we get quick money, however, the disadvantage is that we could possibly let other clients down by not delivering their work on time and our work could suffer. We get more stressed and if it is a major project, our sleeping pattern gets disrupted. If you are a designer you should check out this post for some specific productivity tips.
Good + Cheap = Slow
If a client wants a good, cheap piece of work then they will have to be patient to get it as they are getting a discounted price… We have other projects to work on from higher paying clients so they get more priority.
The advantage here is that we do not have to stress about tight deadlines and we can work on the project in our own time with less stress. The disadvantage however is that we get less pay even though we worked on the project over a period of time.
Fast + Cheap = Inferior
If a client wishes to have a fast and cheap job, then they should expect the result to be quite inferior. We do not have the time to make the job as good as it could be plus on top of that, we hardly get any return on the product.
The only advantage here is that we get some quick money in a short amount of time. The disadvantage is that the end result will probably be something we will want to keep hidden away under lock and key.
In this case, clients truly get what they pay for and this is the least favorable choice of the three. Try to stay away from fast, cheap labor.
I love how Freelance folder described this pricing method and I would highly recomend reading some of their articles if your interested in learning more about what it is like to work as a freelancer. It is quickly becoming one of my favorite Blogs.