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level | 3 years ago

I recently left a boutique agency of 5 years and I can definitely resonate with this one. Our agency aimed to catch big fish, and we did, but since they are hard to land we'd pick up small jobs in the meantime, just like the project that you're describing here. In my perspective, this isn't someone deliberately ripping you off. I imagine they intended to ship at the cost they quoted, but the team didn't adjust their working style to match your price point.

All the variations of the logo and design mocks are clearly overkill for a $15k project. The design team had time to fill and wanted to provide lots of options for you to pick from, as they typically would on a larger project. Those variations are an expectation for $100k clients, and you got the $100k customer treatment, but unfortunately not at a discount.

The reality is, small jobs like this are effectively make-work projects for an agency. They typically don't pay enough to be an effective use of time for the agency, but are a way to stay in the black between higher value projects. Small customers become "nuisance" customers as soon as a something better is landed. The team members being swapped out as they are needed elsewhere and newly joining team members then need to re-contextualize and regain momentum, all on your dime.

Your takeaway is correct, don't be a small fish for an agency. If they're busy they won't take your work, and if do show interest, they are desperate for work.

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mtlynch|3 years ago

Interesting perspective. Thanks for sharing!

>All the variations of the logo and design mocks are clearly overkill for a $15k project. The design team had time to fill and wanted to provide lots of options for you to pick from, as they typically would on a larger project. Those variations are an expectation for $100k clients, and you got the $100k customer treatment, but unfortunately not at a discount.

Oh, huh.

I was thinking about this as I did the writeup. It didn't feel at the time that they were spending excessive time on the logo variations, but I went back to the notes I took on our first call and realized how out of line all that early work now feels relative to their 30-40 hour initial estimate of the rebrand.

tehwebguy|3 years ago

It wasn’t scope creep it was a scam. Shady contractors in every industry pull stuff like this.

They didn’t deliver what you actually contracted for until you put your foot down because that was the hook — they couldn’t keep taking your money if they gave you what you wanted.

For anyone else reading this the best move would be to shut it down as soon as a single minute has been billed for out of contract work: “Hey this is not what I contracted & I won't be paying for any out of scope work.”

dbingham|3 years ago

Here's the thing I don't get. Did you not have some guarantee of completed work? When they quoted you the $7k, I could see building timeline flexibility into that quote, but I have a hard time imagining building so much flex into the contract in terms of budget that they can hold your work hostage to where you sign the retainer contract. It seems like you should have had some sort of legal recourse to hold them accountable to delivering the promised work in a reasonable time frame before you went the retainer route and found yourself on the hook for an extra $40k. Was there not?

Also, I was surprised by how much you let Isaac get away with. He admitted he badly mismanaged the project, and made decisions that lead to that mismanagement with out consulting you. He badly blew his estimates for you, and was pretty clear that it was his fault. I would have pushed him to eat much more of the losses than he did.

anthony_barker|3 years ago

Couple of questions:

1) Did you pay everything up front or was it a 50% up front and 50% on delivery basis? 2) Did you manage any deliverables on a google sheet (dates, owner etc) or something similar?

TheCapn|3 years ago

>The reality is, small jobs like this are effectively make-work projects for an agency. They typically don't pay enough to be an effective use of time for the agency, but are a way to stay in the black between higher value projects. Small customers become "nuisance" customers as soon as a something better is landed. The team members being swapped out as they are needed elsewhere and newly joining team members then need to re-contextualize and regain momentum, all on your dime.

Man. That 3rd paragraph resonates so well with me/my employer. We're an industrial automation company. Family owned. Started from the owner's shed and grew to what we are now. We were built on smalltime clients and our product quality got around through word of mouth and are now at the point where we have massive multi-million dollar clients.

We still support the little guys though. And we get more little guys under our umbrella every year. I think there's still a part of our company that recognizes we have roots in helping the farmers automated their cleaner processes. We also have the nearly identical issue that our OP is bitching about: we're married to these massive clients and we fill the gaps with the little projects. But when the timing is getting tight, the little guys are who loses out.

I'm starting to see the cracks. Clients who built our foundations are losing out on support and growth opportunities. We're more concerned with the next mining project or new facility build than we are selling small guys upgrades and ongoing modernization. It's fine as far as the pocketbook goes but I feel like we play a dangerous game allowing our work schedules to be dictated by the big guys. Eventually they all grow to realize the same thing: the controls part is crucial enough to the business that it needs to be brought in house. Once that happens our value falls off quickly. It's only bad because we're losing our core for the opportunity to play puppet to some truly massive clients.

I feel like I'm getting a bit lost in the weeds, but really my point is just how I haven't really thought clearly about what the perception of our business must be to the clients, both big and small. We play a critical service role among many industries but we also run the risk of alienating the business that's virtually guaranteed to be there in hopes of marrying ourselves to somebody who only needs us now, and probably not tomorrow.

ghostly_s|3 years ago

If retaining the small clients is a business goal, you should have a (small) dedicated team devoted to them, that knows how to work in the way that these small clients need.

aetherspawn|3 years ago

As the owner of a control software company, your explanation about big companies bringing things in-house matches our experiences perfectly, and instead of assuming that they will never be able to bring things in-house due to the niche and a lack of experience, it has inspired me to put some more thought into how to solve this problem as we grow by focusing on having teams dedicated to dealing with and keeping our smaller recurring clients (i.e. have A and B teams as suggested).

tomaskafka|3 years ago

> Eventually they all grow to realize the same thing: the controls part is crucial enough to the business that it needs to be brought in house.

I think that creates a narrow operating area for almost all agencies - they need to operate in a narrow gap between "work that isn't valuable enough, so nobody pays for it" and "work that is so important for the business, that they bring it in house".

And you get to play outside this envelope only by finding clients so slow that it takes them years to realize they need an in house team. Now you have a different problem - working for a slow client doesn't push you to get much better.

zmix|3 years ago

Why not have a sister company/branch for the small clients? One they grow, you'd be able to transfer them to the big block?

atourgates|3 years ago

I've been at a small agency that's grown into a midsize agency over the last decade+.

Everything about this story rings true, and the author's conclusions are absolutely on point.

Now our agency is at a place where we can say no to work like this, both because we have a solid client base that supports us financially without projects like this, and because we've learned that no matter how good our intentions, neither we nor our clients are going to be happy with the end result.

All that said, my bigger question is: does the new website bring in more business than the old?

It's certainly better designed, but looking at the copy and IA, I'm not entirely sure that the new site is going to convert better than the old.

To me, the old version was distinctive and unique, while the new looks like basically every other SAAS site designed since the year 2020.

nerdawson|3 years ago

I've worked at small agencies for the better part of a decade and couldn't agree more with this summary.

A lot of the comments seem to take the view that this was some deliberate ploy to overcharge. In reality, it was just poorly managed.

> Small customers become "nuisance" customers as soon as a something better is landed.

My guess would be that when quoted, the project was expected to be completed by a certain date. Because the team failed to adapt, the project overran, new projects took over leaving this one to languish.