The Hidden Cost of a Cheaper Hourly Rate

The Hidden Cost of a Cheaper Hourly Rate

Sep 11, 2018 | By Matt |

Entrepreneurship

Everyone expects to get more when paying more, but what do you give up when paying less? There are hidden costs to your business that you're ignoring if you're focused on the cheapest hourly rate.

Lack of Innovation

Industry trends, best practices, and emerging technologies change fast. By engaging with a partner solely focused on delivering at the cheapest rate, you're stifling innovation and the opportunity to reap those rewards in your business.

Thought Leadership

You might not think you need thought leadership, but the fact is you most likely are not a software craftsperson and your expertise lays elsewhere in your business. By focusing your partnership on a cheaper hourly rate, you're missing out on the benefits having leadership and advice from experts in the community can bring to your business.

Mistakes Happen

Everyone is human and makes mistakes. However, the simple fact is that most often a direct correlation can be made between hourly rate and experience. More experienced people will have already made those mistakes. Take advantage and reap the benefits of having an experienced craftsperson architect, design and build a feature or product that avoids common pitfalls or mistakes a less experienced person might fall victim to.

Get it Right the First Time

We hear far too often, "we should have just went with your original proposal". We don't take any joy from hearing that!

By chasing the cheapest solution, customers find themselves in a situation where the product was poorly written, discovery wasn't adequately performed and there are fundamental user experience falls in the product, or features just don't work.

At that point, you have invested in a subpar solution and don't even have your original budget. It's a hard lesson for any customer.

Read More

Interested in learning how else you benefit from working with a premium partner? Just so happens we've written about that too!

Learn how you benefit from a premium rate

 

Written by Matt

Dad, husband, and Founder of Lotus Apps providing Rails and RubyMotion development out of Knoxville TN. Creator of http://www.gemprospector.com for #ruby devs.
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