Get the Price Right

I was taught when it comes down to selecting a product or service, base your decision on price, quality, service.  Then remember that you can only ever have two of these three of these attributes.  So today, let’s focus on price.  No two certification providers supply their schedule of fees in the same format.  Much the same way as no two consultants will provide you with a proposal in the same format. 

However, a certification services provider really only has a finite number of components to their costing and therefore should be able to have a direct comparison made.  Here are some of the ‘words’ used when quoting fees; application fee, administration fee, annual licence fee, additional certificate fee, gap analysis fee, stage 1 fee, stage 2 fee, document review fee, certification audit/review fee, accreditation levy, post certification / surveillance fee, triennial audit / recertification audit fee, follow up audit / nonconformance audit fee, travel time fee, travel expenses, cost recovery fees, etc.

Nearly all providers charge on a fee for service basis which normally means the provider over services.  At least one, structures around fix fee, paid in advance.  Only one charges for intra-metro travel, some charge intrastate, most charge interstate and international.  All will charge you extra for a nonconformance or follow up audits.  Most will increase their fees by CPI each year.  All will review their fees just before or after each 3-year certification cycle.

The best way to evaluate them is to set up a matrix that allows multiple variations in fees and terminology.  Then add weighting factors for customer service, reporting, penalty clauses, etc and then it all be just up to just how damn good they can be with their customer service and their quality management processes.