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Your Project Budget Should Not Be Just a Single Number
After decades of building projects for clients it was apparent that a single option for a furniture project budget did a huge disservice to our potential and current clients.
While we don't want to get too far in the details (weeds) on the process there are several key elements that you should be looking at when you start a new project.
It's Not Good, Better or Best . . .
We've heard it and you've probably heard it as well. The presentation shows a Good product, a Better product and then a Best product choice. This is usually shown in figures that go from smaller to larger. This assumes that the more you pay for a solution the better it must be ?????
We have a major issue with this assumption.
First it's all furniture and will should adhere to industry standards established for base line quality and function. Assuming that this is the case then there are usually reasons why there is a price difference.
A few of these can be:
- Size of company manufacturing the product
- Size of Research & Development department
- Artistic nature of the product (high design will command a higher price)
- Country of origin
- Country of assembly
- Number of finish options (paint, fabric, laminate or wood)
- Level of finishes that are offered
- Amount of assembly required at the end-users office
None of these factors should necessarily mean that a thing is better.
It should simply be Low, Medium or High . . .
If a client determines that they need 20 office chairs and have a preliminarily budgeted of no more than $500 per chair, showing a $850 chair does not make the chair a "Best" option, it makes it unrealistic.
A superior approach is to show what is available in the $300, $400 and $500 ranges. These are affordable and there will be differences in features, benefits and longevity of the product. And now the client has a true choice they can make about which option to choose.
Most of the projects that we work with initially are where the client has not purchased in furniture in some time if ever, so there can be serious sticker shock involved.
A 3-Tiered Budget Has Proven The Most Useful
The purpose of a 3-Tiered Budget is to show a range of solutions that will all meet the stated goals of the project.
A key benefit is being able to see where the budget could be along with the ability to pick and choose from each category to customize the budget to an affordable amount to satisfy each of the client stakeholders.
YES, it can be a lot of work to assemble the budget -
Depending on the complexity and size of a project assembling 3 complete budget scenarios can be time consuming. This is likely the primary reason why it is rarely, if ever done by others in our industry.
We at IDI don't usually follow "industry norms" when it is advantageous for our clients not to do so.
Yes, it takes time, but if you develop the right systems and processes then it becomes easier to pull together and OUR CLIENTS ARE WORTH THE EFFORT !!!!
Interested in getting a FREE FURNITURE / PROJECT BUDGET for a current or future project?
We have a FREE FURNITURE BUDGET offer that is just perfect for you. You can access the offer by clicking the button below and providing us just a few bits of information to get started. Again - it's FREEEEEE.