Shawn this is right on the money. No pun intended.
Even in my world of independent designers (I hate using the word freelance) the exact same arguments apply. Some startups or SMEs are not even in a position to hire any employees, but they need help on a projects basis. Why are hire an experienced senior freelance designer to guide you through a project, when you could hire someone on Upwork for a third of the price? They may take a bit more hand-holding, and work a bit slower, but we’ll get there in the end with a similar result for half the price, right?
You get what you pay for. Every time. What seems like some up-front savings can really bite you in the butt later. The trouble is, many entrepreneurs are short sighted, or they simply don’t understand the importance of good design for their project. So they end up choosing the worse option and then don’t understand why they fail, when the didn’t surround themselves with the right people to support success.