In general, we need to pay for convenience. It’s less convenient to take a bus to work instead of a comfortable taxi, but the latter will be more expensive. Having a meal cooked for us professionally is nice, but of course, pricier than we could make it at home.
As such, outsourcing is one of those business efforts that sounds great on paper but can sometimes lead to unexpected expenses if you’re not careful about it. Many business blogs will emphasize the promise of handing off tasks to experts and freeing up your time, but it’s easy to find yourself in a situation where you haven’t priced in that convenience well. No business is entitled to outsourcing after all.
That being said, with a little foresight and good planning, you can outsource without falling into the trap of overpriced convenience charges or predatory pricing. This means being smart about how you choose your providers, of course, often it’s the most grounded businesses like fabrication shops that know how to keep clients around.
However, from there you may wish to consider the following advice:
Define Your Needs Clearly Before You Start
The upsell is great for your salesmen, but not when you want to pay for a distinct service. This might sound obvious, but you’d be surprised how many businesses jump into outsourcing with a vague idea of what they want, only to end up paying for services they didn’t really need, giving vague briefs that need revisions to complete correctly.
So, ask yourself – what tasks do you want to outsource? What are your goals? How do you envision the final product or service? If you’re clear about your requirements, the less likely you are to fall into the trap of paying for extras you don’t need. A good outsourced entity will try to become entirely clear about what you want, but you can circumvent the Q&A and just provide that from the start. This often means exact pricing and quotes.
Research Different Providers
You wouldn’t buy the first house you see without checking out a few others first (hopefully), and the same logic applies to outsourcing. Don’t settle for the first provider that pops up in your Google search or the one your friend recommended. Take the time to research multiple providers because it really does pay off, and that means gathering quotes to compare what each one offers.
However, it’s important not to just look at the bottom line. Consider exactly what’s included in the price from top to bottom. For example, some providers might offer a low initial quote but tack on additional fees for things like project management, revisions, or even basic communication. Maybe they’ll offer three free revisions, but after that you have to pay for a new project. That’s reasonable.
Others might charge more upfront but include these services in the package, which could save you money in the long run, and is generally the best way to do things. If you’re unsure, ask for a clear breakdown of the costs. It will help.
Negotiate Terms Upfront
Yes, you can negotiate if needed, or at least start the conversation off. The initial quote is rarely set in stone, especially if you’re clear about your budget and willing to have an open discussion about costs. Better yet if you can pay immediately.
Be honest about what you can afford and ask if there’s room for adjustment. Maybe you can negotiate a flat fee instead of an hourly rate to avoid unexpected charges, or perhaps or perhaps you can agree to a payment schedule that suits both of you when needed. Client that serve small businesses may understand this more. It never hurts to ask.
Opt for Long-Term Relationships Over One-Off Projects
Outsourcing providers really love long-term clients, for obvious reasons. They may even begin to factor their business model around your needs slowly. If they know you’re likely to stick around, they might be more willing to offer you better rates or throw in extra services at no additional cost. Of course, that means one-off projects often come with higher fees because they require the provider to ramp up quickly and then move on, especially if quick delivery is needed.
For that reason, if you believe you could need ongoing support, it might be worth discussing a long-term partnership from the start. This could involve setting up a “retainer” agreement like law firms do, or just agreeing to a steady stream of work. They may be much more willing to work for you should you do that.
With this advice, you’re sure to outsource without causing yourself undue charges going forward.
