QUOTE(X.E.D @ Jun 16 2006, 04:35 PM)
Which is, why would I get a person who charges RM2000 for my personal flash site when a person who does it under RM200 outperforms him/her? So it HAS to be the latter person wouldn't give a damn about what I want, what I need? Nope.
TBH I might be underestimate web designers' work. But I care for how the website works- in design first. And what I saw definately does NOT justify the price.
I'm not going to touch on photography and those sites selling them because that can be a whole topic of its own.
However, because my focus is web that's why I'd like to try my best in explaining why some people charge more and they get it for all their worth. Not to mention, it's true half the time in Malaysia you pay peanuts to most people you'll only a monkey's work. I'd also like to say this debate gives me great practice as influential power when I try to convince and instil confidence of clients in me in future. So thank you for such a great debate started.

Okie, let's take your example of a person who charges you RM2000 (Mr A) and another at RM200 (Mr B) for a personal Flash site. Let's also assume both of these are legit and honest people who love what they do. Let's also consider the fact that you're a designer (Mr C) who is hiring another designer to help you do something.
Mr A has 10 years experience and he's a qualified Art Director. So to him, he charges you by the experience and the knowledge he has to share with you on the best action to take for your personal Flash site. He's been in the field and he's been through it all.
Mr B is only a student or a fresh graduate trying to break into the business. He knows that if he charges too high, he won't get the job. And what if he doesn't, no money to eat, no money for rent and etc. Mr B outperforms Mr A in terms of the new ideas he's seen by surfing around more and knows how to impress you by implementing those new funky type stuff.
Now, here's the finale. If you're a designer and you hire designers to help you design something, you'll never be 100% satisfied with what that designer has to offer because your vision isn't aligned with his. Mr B impresses you more because he's cheap and he so calls 'outperforms' Mr A. As for Mr A, well, to him is that he'll most likely take it as not a lost but a win in relief that he doesn't have to handle a case where he's not appreciated.
And all of this happens even when we're assuming both Mr A and B are legit and honest business people.
I can tell you now that some agencies who quote clients even from the government are over pricey. But why do these government clients give in and throw money at these unworthy agencies. I wish I knew. I can only assume because they've won the heart of the client with suggestions and marketing.
When I was a fresh grad, I asked the same question as you at one point. I asked why and how can agencies get so much money from clients and why clients don't mind spending. Well, through what I've learned and heard from colleagues:
1. Clients demand quality and results.
2. Clients trust a brand than a price.
3. Clients listen to their friends.
4. Clients know what its like to run a company with a workforce.
5. And other things I'm still learning..
I'm getting tired of explaining this issue because it feels like website design really doesn't have an understood value in Malaysia. It's getting tiresome that I'm feeling more like I'm preaching for you to consider than to understand the quotation from all aspects and not just the design or the value.
So let me end this long entry with a breakdown of costs some companies take to survive..
1. Pay company fees (SDN BHD, annual and monthly fees) - 2300-5k+
2. Company office rent (per month) - 2500-5k+ depending on size
3. Company materials (stationary) - 1000 per month
4. Company equipment (software/hardware) - 10k a year (if there are 10-15 workers)
5. Company employees (assume each 1.5k and 10 people) - 15000 per month
6. Comapny misc expenses (petrol..etc) - 1-5k per month
If you do the maths, you can see why an agency will quote clients at a much higher price. The reason some are higher or lower depends on the risk, the value and the company they are handling.
If a freelancer earns RM4000 for each project, it could be because he's got what clients want and believe. If he only charges a client RM200, several things can occur on its own that I don't want to touch.
I'm not going to tell you the peanuts proverb but I'm going to ask you to try and look at this from different angles, views and possibilities on why people charge the way they charge and how come they can charge the way they charge.
Every business runs on a different strategy.

Sorry for such a long and tiresome post everyone.