The real cost of low priced project bids.
The saying is true, you get what you pay for, especially when it comes to digital projects. When someone gives you a price that seems too good to be true, there's a good chance that the next iteration of your project is going to be much more - leaving you to have to decide to pay more or leave your project as is. Elias Slater from Stauffer gives an overview of what the real cost for a low priced project bid really is.
Elias Slater, Stauffer: “Well, I wanted to add to the previous question, which I guess kind of ties into this. If you go with the 10 buck guy, you can get a good deal once and that’s great and you can get a product out launched, version one, we are out, awesome, we got a sweet deal on this. And that solves a lot of the studio side of things. So you get your version one product out and everybody is happy but things are updating constantly. You can’t just go with version one. You got to iterate and that’s when the pain point really comes in and that’s when it turns out to be a sour deal and it’s a lose-lose for everybody if you go with a guy who’s underbid. You’ll get an aggressive developer agency third party that is excited to get a foot in the door and they’ll burn the midnight oil for you and do a really good job to get that thing out. But, then when you want to iterate they are like, ‘we lost our pants on this. We gotta get some more money. We gotta recoup this.’ And then we’ve gotten into a situation bunch of times where we are stuck and we have a lot of version one products out there that sit on the shelf.”
Jose Caballer, The Skool: “Wow that’s an interesting insight. So when you budget for a project, you should budget for the long term and all the iterations. You are not buying a washing machine is what you are saying? You are actually buying a long-term relationship.”