Lowballing and cheap rates

A couple weeks ago I started a thread on pricing and so forth. After a rather heated discussion I had decided that I would write an article. That said, instead of writing a full blown article, I figured an article and it's the BEST one I've read thus far on how pricing, etc actually works in the indutry.

For all those who charge way too little for their design work, this is a great article to read. It shows how the business side actually works in web design.

I'm not sure if I can post a link to the actual site on this forum since it's pointing to another forum/site??? To be safe, I've linked it on my blog at www.realmoneywebdesign.com.

Otherwise, you can view the direct link at http://www.sitepoint.com/article/guide-signed-contract -- Moderators can remove this line if it's not allowed. Cheers!

good read.

no more cheap ones for me...

I remember reading this article a looooong time ago (couple of years I think)

Brendon Sinclair also authored the most excellent Web Design Business Kit, it has helped shape my freelance business (and myself) into a professional and profitable entity.

The article linked to above is excellent and I have been adding value to my quotes for the last couple of years through the application of those methods.

It's funny because I always used to think that consumers made decisions based on final dollar amount. Simple as that. If I'm cheaper than the next guy, I'll get the business. It took a marketing course and real-world experience to "understand" that consumers percieve quality with price, regardless of whether it's true or not.

I still like to think that a most expensive product is a better product. Television and advertising and marketing has trained my brain to think that way. I still won't buy anything inexpensive if I want good quality because my perception is that if it's cheaper, it's not as good or reliable and I'm looking for products to simplify my life, not complicate it. Funny part is this... I know this but my brain still associated quality with price!

Same goes for web design. Many clients will simply stay away from low prices because they feel it is an inferior product. It's human nature.

So next time you want to quote a job really low, think about this: If you charge the client more, they will think the product is better and you'll get more money for the exact same thing. It's all about perception. Why do you think companies such as Mazda, Sony, etc are willing to spend $200/hour with an agency to do their web design? Is the product better? nope. Are they faster? not necessarily... Think about it cause it's true. I see it every day.

Unless the client isn't interested in quality, and actually interested in price. But otherwise it is very very true.

(This post is very hard to read, oops)

Originally Posted by Animus Unless the client isn't interested in quality, and actually interested in price. But otherwise it is very very true.

If a client is just itching to spend money on something and they don't care about quality, then why would they consider doing it in the first place? (I'm referring to businesses here). The days are gone where simply having a website is good enough. It's now considered an extension of your business and should be treated as such.

That said, I've been in those situations before and I've learned that clients interested in price as their deciding factor are not worth the time or energy. If they are more interested in price than a good product, it's not worth my time or energy. In my experience, these are the worst clients to work with and the least reliable. They will be the first to leave for the next lowest bidder. So much for trying to build a relationship. I also don't buy anything from these clients either I'm afraid their products are cheap.

I don't have any arguements there.

Originally Posted by kork That said, I've been in those situations before and I've learned that clients interested in price as their deciding factor are not worth the time or energy. If they are more interested in price than a good product, it's not worth my time or energy. In my experience, these are the worst clients to work with and the least reliable. They will be the first to leave for the next lowest bidder. So much for trying to build a relationship.

Exactly my sentiments.

Great read, I think I'll be ordering that book sometime soon!

Hitting prices that low just show your not worth jack. Personally, I usually charge 2-4x as much as others quote a client and let quality talk for itself.