02 Aug

Is cheaper really better?

Published in: Blog
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At Sonix Studio, we get turned down by clients all the time because they can find a cheaper option somewhere else. This is fine for us because we recognize that we aren’t the cheapest option out there, nor do we strive to be. Our business model is driven around creating the best solution that will get you what you want out of your website, results. And we do that at a fair price.

The same goes with our hosting packages. We don’t crowd our servers with more sites than it can handle and we buy the newest and best equipment out there. This translates into less downtime and because we are also your website developer, there is less need to worry about potential upgrades. Our costs are still the same therefore we charge more for the product. We don’t rely on thousands of customers to offset that cost.

As BlueHost and HostGator customers are finding out today, the cheap hosting packages they prided themselves on by saving money, has just bit them in the rear end. Both companies have been down for a significant amount of time. Their customers don’t have access to email or any of the other services they provide.

It’s tough to be sympathetic, but at the same time I can’t bring myself to say “I told you so”. Instead, I think there is a lesson to be learned here. When a company offers you something for cheaper, you really need to ask yourself why? The cost savings need to be made up somewhere.

You also need to assess the risk. In this case, the downtime is costing you probably more money than you saved. To the credit of anyone that is suffering an outage, you couldn’t possibly predict this. However, you can determine a risk factor prior to making the purchase. When a company is offering a service at more than half the price of a competitor, something funny is going on. In this case it’s cheap equipment, lack of customer service personnel, and overloading equipment to handle more customers.

The same goes for our website services. We often hear of people that go to a cheaper solution. Our business model is based on selling 2 things, time and expertise.  The companies that undercut our prices are lacking in one of those 99.9% of the time.  Either they don’t have the expertise or they aren’t planning enough time to get it done right.  

Many times customers will come back to us after a disappointing experience with their “cheap” developer.  They may have not planned enough time to finish all the work and when you went back to them for updates, they say “we’re out of time”.  The other scenario is that they have no idea how to build larger websites, don’t plan for future expansion, and you end up with something completely unusable and too costly to bring it up to your standards.  So many of our clients tell us that our price is too high but then when they come back to us to fix what their cheap developer did, the end result is their cost is much higher than if they just went through us to begin with.

What it comes down to is that we’ve been doing this a long time and have seen just about everything.  We understand what it takes to build a great product.  Most often, the cheaper option is just that, not a good option. This advice doesn’t just apply to web hosting and development. Just about every business decision you make needs to be analyzed. Sometimes the cheaper option works best for you. Other times not so much.

Just some food for thought on a Friday.

Last modified on Friday, 02 August 2013 20:18
Chad VanCalster

Chad VanCalster is a businesss development specialist with Sonix Studio, a web development, design, SEO and hosting firm with offices in Green Bay, Wisconsin and Dallas, Texas. A Computer Science graduate of Northeast Wisconsin Technical College, Chad started his career consulting for large corporations in the northern Wisconsin region, including Wisconsin Tissue, Georgia Pacific and Schneider National, among others.

Through experiences with marketing within his own company, Chad became a student of Internet Marketing, with a focus on Social Media.  That eventually branched into helping clients with THEIR Social Media Marketing.  Chad is an expert at using social media to expand your credibility and impact in your chosen markets.

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