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Original thread:
Post 201 made on Sunday February 1, 2009 at 13:35
bcf1963
Super Member
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Posts:
September 2004
2,767
On February 1, 2009 at 02:40, Audible Solutions said...
This is a prime example of the misinformation that has
passed for fact in this thread. It may be logical but
it is nonetheless inaccurate. The customer rarely, if
ever, pays the real costs of programming or labor to
complete the job. These costs are subsidized by other
parts of the job.

Alan,

I've read your responses to myself and others on this. In my opinion, they lack logic. The logic they lack is this: You say the market won't allow you to pass the full cost of programming to customers, as prices for equipment have declined. Therfore in your "logic" customers should be happy if they get a working system, and never run into the need for the code. If things fail, they need to realize they just paid the true cost. (I can't even type that without shaking my head in disbelief.)

What you have, if what you say is true, is a failed business model. If you can't get what your skills are "worth", then go apply them elsewhere. This is a free market economy. There is no requirement that you perform any specific job.

Personally, my guess is that like many professions, that the value per hour, for the skills discussed is being over-estimated. Customers pay for the benefit they get. If the majority of the market will do the job for half of what you will, you can argue you are worth twice as much, but it is only an argument, as the market decides value.

It's been pointed out to me so many times in this forum, that "Pro's" don't want to provide line item quotes, so in effect customers don't know what the cost of line items are. So the true value to customers is hidden in what you pay for the equipment, as opposed to what a big box retailer turning 1000's of units would pay, your time to wire, program, and troubleshoot. So now you want to complain that they undervalue your programming. Yet, you won't accurately bill them for this, and attempt to share the true cost/value with them.

Seems the choice is clear. Let the values stand on their own, by pricing "all items" accurately for customers. Let them go buy TV's elsewhere if they can get them cheaper. Why should you care? (And don't give me the "What if it breaks?" argument, we all know the solution is to tell them up front that a line item to install is present. Another item to remove and reinstall is required if what they bought if faulty.) Per your own and others admissions here, the margin's on them are paper thin, as you're not buying 1000's at a time. Then you price your other tasks at their real value, and can determine if there is money in this industry, or it is time to look elsewhere to apply your programming talents.

Every day I'm pushed to do my job cheaper and better. Equipment to produce semiconductors is priced in the millions of dollars, yet an IC that contains a microcontroller and an arsenal of A/D and D/A converters may sell for only $1 in the millions per year. If this industry doesn't think it is making enough money, we should be ready to go and start making injection molded light switches. This is the way of capitalism. It's a tough road, but I think it works if given a chance.

Perhaps you are undertaking a "ponzi scheme". Note those are your words, not mine. The inability to account for the true cost of doing business would be your problem, not your customers.

I still believe Julie's arguments are the ones that "ring-true". They address real issues, and attempt to achieve some level of protection for customers. No customer knowledgeable about what can happen will argue that they don't want access to the code. In real life, S%#& Happens! CI's go bankrupt, they move, they change jobs, fires occur, hard drives crash. These things are real. This is the reality I think customers need to protect themselves from.


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