I was flabbergasted when I first learned the process by which IKEA arrives at their ridiculously low prices.
You’d think they’d look at the materials, the labor, the distribution, the marketing and so on, then come up with a price that makes them a profit.
So…what can we learn from the crazy way they actually design their products?
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Hope this helps!
Five Ways To Have An Excellent Coffee Date With Me
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The False Nobility Of The Struggle
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If You’re The Smartest Person In The Room, Do This ASAP
Your Glasses And Crucial Laptop Positioning Info
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The Crazy Backward Way IKEA Prices Their Stuff
Voices.com Complained To YouTube That I Violated Their Privacy
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AMA (Ask Me Anything): Here Are The Answers (Part 1)
AMA (Ask Me Anything): Here Are The Answers (Part 2)
AMA (Ask Me Anything): Here Are The Answers (Part 3)
AMA (Ask Me Anything): Here Are The Answers (Part 4)
AMA Answers Part 5 Plus A Medical Warning
Last AMA Answers (#6): Gear, Services and Success
A 7-Word Reminder: “Don’t correct people when it matters little.”
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What’s Your Next Big Move? Are You Ready?
Build Your Future On Your Own Platform, Not Someone Else’s
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Time To Accept That I’ve Failed At Something – Happily
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Value Enthusiasm, But Value Persistence More
Ten Ways To Make Money With Podcasts Besides Ads
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I recently had my first experience losing a client on price. In December I began what was to be a regular gig doing narration for short entertainment trivia videos for a few YouTube channels. I agreed initially to a fairly low price, but the gigs seemed pretty quick and easy and steady. In the first month, while it was a nice steady flow of work, I quickly realized I was spending more time on them than necessary. The copy was written by folks for whom English was clearly a second language and in order for me to be able to make it work, I had to do a lot of copy editing. Not part of the deal and significantly ate into my ROI. I addressed that issue in a very professional manner and said that if I were to continue, we would need to discuss the payment terms. We did and I even allowed them to haggle me down to a fairly minor increase. But apparently, even that was too much, as I have not had a single project from them since and have seen they are using another voice now. While I’m bummed to lose out on some steady money, I don’t feel bad losing a client who was so cheap that a very small and reasonable pay increase due to work I shouldn’t have been doing in the first place was just too much. There was someone out there willing to do it, so good for them. I also imagine they have a fairly high turnover rate.
I do offer this to clients. I took that approach from having worked on designing and making my own jewelry for the last 18 years.
My observations lead me to conclude that industry price erosion has been aided, promoted and exacerbated by VO coaches who appeal to entry level individuals, and by our industry trade group, WoVo, whose technical leadership outrightly denigrates the value of more expensive, premium outboard gear, and the judgement of those who would propose otherwise. Ancillary to this point, are the countless YouTube videos about VO setups emphasizing the very cheapest path into the business. The combined result has created the notion the VO field has no barriers to entry from a skill or monetary point of view…….if you have a closet you’re in business.
However, once an entrepreneur has invested $10 – $15, 000 (at least) in evaluation, coaching, a custom studio or booth, and quality gear……..if you’re inclined to want to run a successful business, creating a revenue stream that supports meeting your objectives becomes serious business.
You and Marc Scott are notable exceptions to the current trends mentioned above………more power to you.
This seems to be an issue for many self employed people in industries far and wide. I am a real estate sales professional, have been for going on five years now, and have seen other agents undercut one another to get the deal. My thoughts on this is that it devalues the service we offer to our clients and makes all of us look more like commodities instead of true service providers. I too, have spent thousands upon thousands to make myself better in my field, taking classes, keeping up with certifications, contract language, etc… just to have my clients go elsewhere because they can get a discount. It’s very disheartening… It’s also easy to say, “well, let them go because they are cheap or whatever” but it’s harder in practice because it’s happening soooo frequently. Add that to the amount of real estate agents across America that are being killed by people who pray on such singularly solo practitioners and it’s got me exploring other avenues to making a living. I’ve been contemplating VO for a couple of years now. I’ve had minor experience with IVR and I liked it. If I were to go the VO route, I would develop my skills and become a pro… not just a wanna-be without the effort. It is disheartening to see the same devaluation going on in the VO world… :(