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The development of a project is a work. It is a service deserving to be paid for

We imagine, design and implement, MICROingranaggi‘s slogan says.
Well, today I would like to talk about the part of our work related to design, as we still meet customers who believe that this specific operational phase should not be paid for.
Why? Because “we make you do the production of what you design”.

Well, let’s say that’s not really how it works.
I want to say that

the design of a solution studied and implemented for a specific application is a separate phase, not necessarily related to production.

And the customer, once the project is finished, will be the one and only owner.

Indeed, we are used to deliver everything to those who ordered the work to us: drawings, quotations, materials and so on. Precisely because customers must not be bound to us, as creators of the project. They have to choose us also for the production, only if they are really convinced that we are the ideal suppliers. All with complete freedom to decide where to go.
Of course, those who design a solution – if organized to do so – often take care of production too, but the two things are not necessarily linked.

Failure to charge for a project is a mistake often made when young.

A mistake we made in the past in the erroneous belief that this was a good idea and that the project would pay off at a later stage.

However, the truth is that

the development of a project is a work; it is a very precise service rerquiring skills, tools and experience. Therefore, it must be considered a job order equal to the others.

Yet, even today, several customers still find it unclear and unpredictable why a project should be paid for.

There’s more. Another very important observation should be made.

When we develop a project – regardless of the field of reference – we charge the customer just the hours spent on the work (i.e. the objective time needed for the development) and not the idea coming from our know-how and experience, that lies behind the project.

To make you understand exactly what I mean, I give you a practical example that concerns my sector.
Let’s say that a customer orders me the design of a specific product without giving me any particular directions. Let’s also suppose that, in designing it, I get an idea on how to make it in order that its production costs are halved compared to similar products on the market.

Well, in this case, not only will I have developed a project from scratch as requested, but – thanks to my idea – I will also give my customer a considerable gain (the reduction in production costs), which he/she may benefit from for a long time (or, at least, until that part will be produced).

In such a case, just the project will be paid; project meant as the total number of working hours spent on its development. And NOT the idea, thanks to which the customer will have a long-term financial benefit.

However, the idea as well should be paid. Am I wrong?

For some types of work, it is actually wrong to sell our time only, giving a price just to the working hours we dedicate to it.

It would be fairer to sell the real value of our work. A value deriving from our Know-how and experience.

Do you agree?

By Stefano Garavaglia

È il CEO di MICROingranaggi, nonché l'anima dell'azienda.
Per Stefano un imprenditore deve avere le tre C: Cuore, Cervello, Costanza.
Cuore inteso come passione per quello che fa, istinto e rispetto per il prossimo. Cervello inteso come visione, come capacità a non farsi influenzare da situazioni negative. Costanza perché un imprenditore non deve mai mollare.

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