Let's say your company is looking for a new web design and digital marketing agency. You put out a request for proposals, and a few agencies respond back with their strategies and pricing. The strategies all look comparable, but pricing is all over the map—"Company 1" quoted the website at $3,000, their marketing services were only $800 dollars a month, and you can cancel at any time; meanwhile, "Company 2" priced the new site at $8,000 and went on to ask for a 12 month commitment for marketing activities that ran an additional $4,000 thousand dollars per month.
If both companies are offering roughly the same services (for the sake of this scenario, let's say both companies quoted you for blogging, social media, landing page creation, and email newsletters), why not go for the cheaper one? After all, if Company 2 can do it for that price, why can't Company 1?
Clearly they're just trying to price gouge you, right?
Not so much. As with virtually everything in life, you get what you pay for.
Let me show you what I mean: