15 Million Dollars Per Site, Cost $ 40 From Wordpress? Right?

Category: Every dayManufactured: Friday 08/03/2013 12: 01Author: Josh Smith
A website has recently been developed for the government of Free State, a province in the South African Republic. It was reported that the website cost 140 million rand (the currency of South Africa), or roughly speaking, $ 15.4 million.
While this is a controversial issue that it was a site worth 40 dollars from WordPress, because any blogger can create it, with minimal knowledge of design. What has happened since the wave of aggression from local residents of Free State (and the Internet, surprise, surprise) is the traditional government protection and new information that may or may not be pure truth.
Anyway, the topic is exciting, so that it illuminates the danger of running an unfamiliar form of business. This does not remove the client's responsibility to get the most financially profitable contract, regardless of whether the customer is a government or not. As in the "Devil's Advocate", I will act on both sides, and let you choose which one is right.
This is a gross violation!
The relationship between the client and the enterprise is built on trust. Lose customer confidence, and you lose business, a very simple rule. To estimate in 15.4 million US dollars a site, the creation of which will take a little time and effort - this is a great way to lose customer confidence, and, inevitably, your business. With the global economic crisis, most companies regard customer loss as a reduction in profits, and sometimes a decline in production. Further, the business world is a small space, how long can a company exist, acting doubtfully, even before a reputation is created? In general, sometimes your reputation can play a decisive role in obtaining a contract.
When you deal with the government, this is another level of attitude to contact cooperation, which is worth considering. Many governments of non-communist countries have their own level of contracting and internal business. For this reason, the general population of such countries places certain hopes on their leaders who are appointed or elected. In such cases as this there are two ways to solve the problem. First, the company in question is receiving profits from the government, in fact, taxpayer money. As a result, there is a negative attitude and strong pressure on the company, taxes that no one wants and few can pay. The second is to do everything in secret, as happened in Free State.
It seems that the two companies made bets on the contract, the price of which was much lower than the approved one. The more information continues to flow, the more people in the country begin to be skeptical that the government is properly handling finances and is increasingly filling the pockets of shadow corporations. Companies conduct business at a level higher than that required by customers, expecting that the goods sold will be equal to their value. Obviously, $ 15 million for a regular website from WordPress (albeit with some adjustments) is an exorbitant price at first glance. And to use government money that would be worth spending for the benefit of citizens, it's completely wrong. This is unethical. And in business, sometimes the only important thing is your ethics.
Caution! Children!
Who is to blame? An applicant for a contract can not control the bidding decision, without prior collusion. He simply stakes and hopes for the best. If the company can not fulfill the terms of the contract, then complaints are inevitable. And, as far as we already know, the government asked to create a website, and it received it. What was the price for the developer? In fact, often in the world of computers or game consoles, a website will have to be reconstructed to determine its real value. And it's not surprising that usually, it's much smaller than it actually is. And to pay 15 million for a game console, no one will be sure, although the cost of Playstation 4 has not yet been announced), but the prerequisites remain.
In fact, identifying a dirty trick is the business of the buyer. Suppose you order a steak in two different restaurants. Restaurant A - Your favorite, where you have been hundreds of times, and which you really like. Restaurant B has recently opened, but offers a similar menu and services, like in restaurant A, but at a slightly lower price. Which one will you go to? Usually, people choose what they already know or think, the higher the price, the higher the quality. Despite the fact that the steak in restaurants A and B from one cow, it is assumed that the price will be higher in those companies that you know, and that will attract you. This example is suitable for any kind of existing services.
Although the question remains open, will the business be lost because of the overestimation of services for the government, which almost any other organization can provide? The answer is no. The government did not set a price for the contract with the company. The company confirmed the rate and, based on the experience of previous transactions and work, made a profit for the contract. It's always unpleasant to lose contact, to which you put less, but it's an amazing thing when a client, especially if it's a government, understands that reputation and quality of work compensate for saving several (million) dollars.
You can read the article in English here.