16. October 2008 by admin.

Here is a question from the Architecture and Interiors LinkedIn group. I thought it might be valuable for my readers.

“Hello everybody, I wanted to ask this question @ various groups to get some inside info.

3D modelling and 3D visualization is becoming very popular in the Architecture/Interior Design business as a tool for achieving different goals, from boosting the sales to convincing the end customer or the client which is the best solution.

Now my question is simple, what is a fair price that one should pay for a 3D visualization, say like the ones I have on my portfolio website www.miokon.com (just so anyone can refer to the same examples)?

What would be overpriced or underpriced? Or how much as a client you would be willing to spend on 3D modelling/visualization?

regards to all ;)”

*********My Response**************

“Price and value are subjective, as is self evident, but there is a perspective that must be obtained to arrive at the answer. The following may appear to be simplistic, but be aware of the fallacy. I will present three principles that govern in the establishment of price/value. These are not the only principles, but are essential.

First, the principle that “people are assets” should be clearly understood. This means that there is no intrinsic value in things. No matter how often an advertisement or price tag may appear to contradict things have no value. So therefore, the value of a 3D model, or a car, or a video game is zero, by itself. Value is in the people who created the object, not the object itself.

The second principle to understand is that “value follows value”. In our modern economy we use currency as a physical representation of the concept of money. This currency is one form of value. So, if I want the currency that resides in your wallet, then I will want to create something of value for you in order to get your currency which I value.

The third principle that links the previous two together is “exchange creates wealth”. When an exchange takes place, and both parties have acted in integrity, then both are equally benefited or are wealthier from the experience.

To summarize, people are assets, not things, and they establish value which in turn can be exchanged for something else of value and the two parties are mutually benefited by the experience.

So in practice we could create the following scenario. If I were to say to you that your 3D rendering is worth more than $10 to me, and you were thinking that it was worth $9 to you, we could exchange and both receive more than we gave up. You see, you would have valued the rendering less than you valued the $10, and I would have valued the rendering more than the $10.

So when you ask the question about the value of some thing the follow-up question should always be “To whom?”. There is no value in things, only in people, and value is a preference between people.

More to the point of your original question: The services and products you provide are of value to someone. The actual value is determined by their preference in the moment. If you seek to exchange with another who prefers your product more than I do you will get a better price. If you want your product to be of greater value, then create more value for the one you hope to exchange with.

When I seek to set price for a service such as yours, I’m typically constrained to the budget of the project which was previously negotiated. If that is the case than the amount that can be exchanged is dramatically smaller than if the renderings were built into the project budget. Right now there are not many projects that I have been able to convince the client they should budget for renderings. Though it continues to improve as time, technology and client wants progress.

Your technique is well developed and you have a keen eye. Keep up the good work.”

Posted in Principles | 1 Comment »

1. October 2008 by admin.

This is a question that I ask myself often, but it’s only now that it has become conscious.

I was just talking with someone I look up to and he asked me what I was doing. My response came real quickly as I nervously ran through a Reader’s Digest version of the past several months. My attempt was to make it sound positive, that I was happy and excited about the opportunities. Well, my 20 second ramble really didn’t give any credence to all that I’ve been through, and probably had just the opposite effect. After hanging up the phone I pondered the experience (as I often dwell on what I could have said better) and realized my thoughts were struggling to answer this one question - “How do I start?…”

I was surprised at the question until I realized that it’s a familiar question, often asked but frequently passes without response. So, I asked myself, in a most conscious way, as I look at this empty Blog. ‘How do I start?‘ In this situation the answer became obvious.

How do I start… to explain what I am doing and why I am doing it? The difficulty I encounter in coming to a clear answer diminishes all the thought and effort that has gone into this new business. For over a decade I knew some day I would start my own business. For the past 18 months we have made plans and put them in motion. In March I decided on some crucial details that accelerated the process. Then when the end of June came, the timing was advanced from our plans but, I actually made the transition from W2 job to self-employed.

To this day when I’m asked to explain it I’m stuck at that nagging question “How do I start…?”.

Words are where it all starts - to communicate what is in my mind. That is where I stumble every time. Words are what I have struggled with my whole life, and speaking them is the most difficult. I’m far better now with words than ever before, but it is still inadequate to express what happens inside - the thoughts and ideas. (This is an intentional exercise in the use of words, because I need to get more clear.)

As far back as I can remember thinking came easily. I can now appreciate it more knowing what Henry Ford said about the subject… “Thinking is the hardest work there is, which is the probable reason why so few engage in it.” Not that I believe there is something superior about the process of thinking in one individual over another, but I started to recognize a part of my Human Life Value, my Soul Purpose, or my Unique Ability.

So, fortunately I had a start for the Blog, but what about the answer to the question? Another day…

Posted in Soul Purpose, Unique Ability, Human Life Value, Thinking, Clarity, Questions | 1 Comment »