In 1999, Kellogg's was seeing a shift toward healthy breakfast options. This meant that their top sellers like Frosted Flakes, Rice Krispies, Pops, and Froot Loops (all of which are loaded with mass amounts of sugar) were becoming less and less desirable from consumers.
Now, Kellogg's could try and reposition their brand, which is known for these fun cereals. But it would take a long time, a lot of change, and hope that their fan base would still appreciate them. Or they could go a different route... like acquiring a La Jolla based company called Kashi that is already known for healthy breakfast cereals. They maintain their position and get to pump Kashi full of Kellogg's resources to gain more market share.
The point? Customers might need it, but you have to wonder whether or not they will buy it from you. Are you in a position to offer them a new solution? Will this new offering dilute your brand?
If you can't do it effectively, make a new brand.
When you are creating a startup, it's easy to get sucked into the mindset that your product/service is needed and that everyone could benefit from it. Regardless of how true that is, people just don't seem to get it. You drill down on your marketing efforts talking about the features of what you offer, but no one understands.
You're bitter. You're frustrated. And it's also your fault.
Yea. It's your fault. It's your fault people do not understand the value of what you've created.
"Zach, that's pretty harsh," you might say. But, I believe it's better than the alternative.
Here's the thing: if it's your fault people don't understand the value of what you've created, then you can change. If it's everyone else's fault, you're shit outta luck.
It's never too late, it's all your fault, but that is the absolute best-case scenario. The question is: what are you going to do about it?
Alright, say you want a logo for your startup. For an experienced designer, this has a streamlined process as well as varying tiers of engagement. They also have a rate for which they will carry these services out. Unless added variables outside of these packages are added, the price shouldn't change that much.
Now say you want a custom e-commerce website, with a bunch of third party integrations, some help on copy, sourcing photos and icons, and then recurring maintenance. You don't know how many pages there are, who is responsible for a lot of the things that will go into the site, it's all custom.
Here's the thing, some design work can be structured within a detailed process. Projects like that should have fixed prices based on the value the designer is bringing to the table. Projects that are unique and require just as much planning as they do execution get custom prices.
In the instance of the latter, it makes sense to dedicate 10% of the estimated budget to getting three, tiered, custom options.