Expensive

The most awkward moment in dealing with a client is when we need to answer this question — “So … how much is it?” for the first time. It can be face-to-face conversation, on phone or via email. It is a moment that we as a builder have to predict what the reaction of a buyer will be when she sees a total figure at the bottom of the page.

Often times, the expectation both parties have on the price is so different that the buyers has feedback like this:

• “The cost of this system should never exceed USD500K?p.”
• “I don’t think this is a right price. Are you sure you calculate this correctly?”

They want us to reduce the price. It is a no-brainer. Everyone want it cheap if not free. But in this case, we cannot do as they demand. We cannot do that because this is not just a traditional bargain or negotiation that everyone will be happy if we reduce the price down by 10%. But this is a fundamentally change to the viewpoint toward this project and this system. It is the way we set a standard to work together in the future.

The truth is we think this is a USD800K project. But they think it must be lower than USD500K. That gap is too big. They may not understand why this price. They may not see the whole picture that actually the system they want is not easy.

And if we comply even for once. We will never bring ourselves up to the same point again in the future because our standard is there already.

“Last time, I paid only this much. The new phase is as big as the previous one. It must be the same price, right?”

No one want to pay more.

As a result, I don’t lower my standard. I don’t reduce my price if it means to change the fundamental understanding about the project and the system. I insist to be an expensive player still. But that doesn’t mean I leave them no choice.

I can reduce the price if they are fine to reduce a scope. Same unit price. They buy less unit, they pay less money for the first phase.

I am ready to change the way we do business together. If buying the whole system is too expensive. What about licensing option, rental option, etc.

I am ready to end the conversation. The assumption and expectation are too different. It is going to be wasteful to try to remedy this kind of situation. Killing it now is a better option for both parties.

I choose to be an expensive player. I choose to build and maintain high standard. I choose to give this company identity it deserves. And I hope to work with those who have the same level of expectation and standard.

There are some of these guys out there. This is about relentlessness and having focus.

Be expensive. :-)

Thinking and writing are the things I like. Sharing is what I love. Because of them, I write everyday to share stories from my thoughts and experiences, from the future I see and believe in. Everything I use to build Inthentic a better home. A home of people who want to do good things and give back. A home that is a small starting point of changes for a better society. I am proud of what I am doing. And even prouder to know that I am not doing it alone.

Thanks for reading. :-)