When we go out in search of a product or service many of us like to throw around the term “affordable” which is completely unfair to all businesses out there. Now let me explain why.
We determine what “affordable” & “fair” means based on our own financial situations.
For example: Sally, Mark, and Jessica all want to hire a Flooring Company to install new hardwood floors in their home.
Sally is going to school & working part time to pay for her apartment, Mark is the CEO of a very well known law firm, and Jessica runs a small local plant shop in her town.
Sally is focused on price & only price because she wants to save as much money as possible. Of course she will scan the portfolio to make sure the company she chooses can “do” the job but that isn’t her main concern. She will decide a fair price is $99 from Company A because of her current situation.
Mark on the other hand cares a little about the price & more about quality. He wants the best hardwoods for his home. He is going to decide $1000 at Company C is a fair price because they provide exceptional quality.
Jessica cares about the price, customer service, and quality. She is going to decide $300 at Company B is a fair price because B provides a combination of those things. B also isn’t too cheap or above her budget.
Naturally people say they care about all 3 of those things but in reality a lot of people are focused more on price OR more on quality.
As you can see a “fair” price is different to everyone depending on what they care about most
Customers aren’t the only ones who use this term either, sometimes business owners like to use this term which is even worse. Company A likes to swoop in & say “I offer affordable prices” leaving Company B out of consideration. However, the customer that chooses A because of their “affordable” price doesn’t realize they are getting the cheapest hardwood out there, unreliable customer service, and no warranty.
This type of thing especially affects the creative community because potential clients usually don’t know what to look for in a quality designer & they end up only focusing on price.
Labeling your company with “affordable” can give off the low quality vibe which in some cases is okay if that’s what your target market is after. However, in most cases business owners & customers should refrain from using these terms.