fbpx

Money / Pricing strategy

Is a ballpark too much to ask?

Whilst in the market for a new Thingy, I struggled to get a straight answer about cost. I mean, how hard can it be to make a rough guess? Very, it turns out.

By

Noel: Hi, I’d like an estimate for a new Thingy please

Supplier: Great! I’ve designed tons of Thingies. In fact my tagline’s ‘Cost effective Thingies for businesses of all shapes and sizes’.

Noel: Ah brilliant, so you’ve done a few then?

Supplier: Mate! I used to manage Thingy development for a huge company in Melbourne. Then I moved to New York and headed up the Thingy division over there.

Then the kids came along and I got jack of corporate life, so I started up my own business, Fantastic Thingies! Been making them myself ever since. I make about 40 of ‘em a year.

Noel: Superb, ‘cause I need a new one. Nice and simple, about six sections. What sort of cost are we looking at?

Supplier: Weeelll, no way I could tell you that. I tailor them all individually to precise specs. I’d need a thorough understanding of your business strategy, needs and industry before I could quote you.

Noel: But all I need is a ballpark for budgeting. You said you’d designed hundreds of these things, what sort of range are we looking at?

Want more articles like this? Check out the pricing strategy section.

Supplier: Each and every one is a unique price.

Noel: Can’t you give me an idea?

Supplier: Well, how long is a piece of string? [Smug look]

Noel: What!?!

Supplier: How long is a piece of string? [Smugger look] Could be any length, could be any price. See what I’m getting at?

Noel: No I bloody don’t. String’s worth about three bucks for a roll of 50 metres. So if you need 100 metres then budget around six bucks – give or take.

Supplier: Ah you see Thingies are very complex. Not like string.

Noel: You mentioned string. Let’s put it this way: I want a simple six section Thingy, nothing too flashy. Can I do anything for $5K?

Supplier: Mate, that’s pretty much the minimum we like to do…

Noel: If I’ve got $10K would that cover it?

Supplier: Oh yeah, we could do something pretty schmick for $10K

Noel: So, I might be able to get away with something around the $7 to 8K mark then?

Supplier: Couldn’t say.

Noel Ranger

is a real Australian soloist operating a professional service business. Basically, if you pay his hourly rate he’ll pretty much do whatever.

Comments

127,153 people use Flying Solo to help them create a business with life. Do you?

Connect with Flying Solo

Explore the benefits of membership