UNDERSTANDING PRICE VS COST

Developing software is very expensive, and commercial grade SaaS comes at a premium.

It’s often hundreds of thousands just to get going.

Offshoring is an option though.

A tiny team here and 10x as many where wages are cheaper.

Or perhaps some cut price locals working at a peppercorn rate for the experience?

You might even ask little nephew Jimmy.

That WordPress website he made was pretty good, right?

These are the cheap options and as ever, YOU GET WHAT YOU PAY FOR

If all you look at is the price, your perspective is very limited.

PRICE = WAGES + OVERHEADS

But you should be assessing the cost

COST = WAGES + OVERHEADS + OWNERSHIP

Ownership covers all the other stuff you have to sort out.

• Code rewrites due to poor design and architecture

• Sloppy coding practices

• Sub-par testing

• Customers lost to a poor user experience

• Missing help and inadequate training

• Increased support costs

• And missed opportunities

They’ll add up to a pile of cash downstream, and far more than you would have spent getting it right in the first place.

Scrimping on price will cost you in the long term.

So, pay for high quality professionals, apply commercial grade rigour, and demand quality at every turn.

The price will go up today, but if you’re playing the long game, the cost will be far less tomorrow.

#MrSaaSSays