Confidence Issue with going higher in price...

by jRad
20 replies
Hey all,

I used to have no problem designing and developing html/css websites for anywhere from $800-$1500. Now, with a pre-designed wordpress theme I use, I sell them for about $300-$500, charging $20 a month. This monthly charge includes updates to the site (blog posts), facebook and twitter, as well as hosting and domain name fees.

Am I charging too little? It's a simple, 5-6 page wordpress theme I created, and I feel like I'm low balling myself.
#confidence #higher #issue #price
  • Profile picture of the author iAmNameLess
    It depends on the quality, I would say you are charging enough because you aren't customizing or offering any additional value other than a quick change of images and content, right?

    You could increase your prices but make sure the value is there. Don't charge $1,000 for a template with content and pic changes lol.

    I DO think you're charging too little on your monthly fee if you're doing all that... Jack it up to $35-45, doesn't seem like a big difference but if you ever have 100 clients, it is a difference of $2,000/mo
    {{ DiscussionBoard.errors[5721709].message }}
    • Profile picture of the author jRad
      Originally Posted by iAmNameLess View Post

      It depends on the quality, I would say you are charging enough because you aren't customizing or offering any additional value other than a quick change of images and content, right?

      You could increase your prices but make sure the value is there. Don't charge $1,000 for a template with content and pic changes lol.

      I DO think you're charging too little on your monthly fee if you're doing all that... Jack it up to $35-45, doesn't seem like a big difference but if you ever have 100 clients, it is a difference of $2,000/mo
      Yeah I agree. I'm meeting a client in about a half hour, and proposing $49 a month instead of $20.

      The site is basically this.. 5-6 page CMS. Actually, I have a demosite linked here

      It's not an actual paid theme standalone, it's basically a blank theme I purchased and then you customize it from there. It acts more as a hub then just a standardized website with no interactivity. I'm thinking of attaching a forum to it, so there would be even more of that.
      {{ DiscussionBoard.errors[5721891].message }}
      • Profile picture of the author philhunter
        Originally Posted by jRad View Post

        Yeah I agree. I'm meeting a client in about a half hour, and proposing $49 a month instead of $20.

        The site is basically this.. 5-6 page CMS. Actually, I have a demosite linked here

        It's not an actual paid theme standalone, it's basically a blank theme I purchased and then you customize it from there. It acts more as a hub then just a standardized website with no interactivity. I'm thinking of attaching a forum to it, so there would be even more of that.
        Maybe its me but if you are selling sites like that for $500 plus $20 a month I think you have done EXTREMELY well.

        I don't mean to sound harsh but personally I think there are way better free wordpress themes but if people are prepared to pay it then good on you, personally I can't see people paying even more but then again I didn't think anyone would pay $500 for one so maybe its worth testing.
        Signature
        **Brand New Hot New Clickbank Launch** Earn Over $108 Per Sale + Rebills - Click HERE For All The Details!
        {{ DiscussionBoard.errors[5721953].message }}
        • Profile picture of the author jRad
          Originally Posted by philhunter View Post

          Maybe its me but if you are selling sites like that for $500 plus $20 a month I think you have done EXTREMELY well.

          I don't mean to sound harsh but personally I think there are way better free wordpress themes but if people are prepared to pay it then good on you, personally I can't see people paying even more but then again I didn't think anyone would pay $500 for one so maybe its worth testing.
          Haha. Well of course the colour's, fonts, imagery etc of the website would be consistent with the company I'm offering it too, the layout would stay the same though. Of course it's not just the website I'm selling, I offer to create twitter / facebook pages and update / maintain them. Also, I tell them, "it's awesome to have a web presence... but who's going to see it? Think of it as being a musician. You can make the best record in the world, but if it's not promoted, then who will notice it?"

          By using that, I can usually design them postcards, business cards and other marketing materials at $25-$30 an hour as well

          //edit - you'd be surprised for what people would pay for a website, having absolutely no idea how the internet works.
          {{ DiscussionBoard.errors[5721970].message }}
  • Profile picture of the author sam m
    we usually charge $69 just for hosting but if they say this is too much
    in your case because you are throwing in the social media with it you can
    just simply say I can take away the social media and only charge for the

    hosting most clients have no idea what you are paying for hosting then
    you can charge $49 a month

    By removing the social services you show that you offer value by removing this and this will show your client that you are offering a valuable service not just low balling for his or her business
    {{ DiscussionBoard.errors[5721975].message }}
    • Profile picture of the author jRad
      Originally Posted by sam m View Post

      we usually charge $69 just for hosting but if they say this is too much
      in your case because you are throwing in the social media with it you can
      just simply say I can take away the social media and only charge for the

      hosting most clients have no idea what you are paying for hosting then
      you can charge $49 a month

      By removing the social services you show that you offer value by removing this and this will show your client that you are offering a valuable service not just low balling for his or her business
      Yeah for sure, that's a good idea.

      I just got back from the second client meeting - they're happy with my knowledge, and they don't mind paying $499 for the site + $49 a month for updates, so that's cool!

      They asked me how to get to #1 in Google.. I said it's numerous things - keywords, domain age, content, etc. Is there anything I'm missing? They wanna get to #1 for their keyword.
      {{ DiscussionBoard.errors[5722429].message }}
      • Profile picture of the author IMguy123
        Originally Posted by jRad View Post

        Yeah for sure, that's a good idea.

        I just got back from the second client meeting - they're happy with my knowledge, and they don't mind paying $499 for the site + $49 a month for updates, so that's cool!

        They asked me how to get to #1 in Google.. I said it's numerous things - keywords, domain age, content, etc. Is there anything I'm missing? They wanna get to #1 for their keyword.
        Huh? Creating a website and maintaining is very different than getting the site to the top (or near) the search. I hope they don't think you will do seo also for that amount. However, if they are not informed then that is what they will expect.
        {{ DiscussionBoard.errors[5722512].message }}
        • Profile picture of the author beeswarn
          jRad,

          In 2008 I was charging about the same as you do now. I sold and built quite a few HTML/CSS sites that year and made almost no money at it.

          On January 1, 2009 I decided to not compete with my competitors on price any longer, and I doubled my prices. I deliberately set out to become the highest cost provider in my market and to distinguish my work as the best.

          In 2009 I made the same number of prospecting calls, made the same number of presentations and I built sites with the same quality. On December 31, 2009 I found that I had quintupled my revenue over 2008.

          I doubled the number of sales I made over 2008 and more than quadrupled my income just by doubling my price. In a severe economic recession.

          Beginners almost always price their work too low. I hope my story helps you with your confidence.
          {{ DiscussionBoard.errors[5723484].message }}
          • Profile picture of the author jRad
            Originally Posted by beeswarn View Post

            jRad,

            In 2008 I was charging about the same as you do now. I sold and built quite a few HTML/CSS sites that year and made almost no money at it.

            On January 1, 2009 I decided to not compete with my competitors on price any longer, and I doubled my prices. I deliberately set out to become the highest cost provider in my market and to distinguish my work as the best.

            In 2009 I made the same number of prospecting calls, made the same number of presentations and I built sites with the same quality. On December 31, 2009 I found that I had quintupled my revenue over 2008.

            I doubled the number of sales I made over 2008 and more than quadrupled my income just by doubling my price. In a severe economic recession.

            Beginners almost always price their work too low. I hope my story helps you with your confidence.
            Wow, thanks. I am pretty confident in the interviews - everything they ask, I know. So maybe I should step my game up..
            {{ DiscussionBoard.errors[5723795].message }}
        • Profile picture of the author jRad
          Originally Posted by IMguy123 View Post

          Huh? Creating a website and maintaining is very different than getting the site to the top (or near) the search. I hope they don't think you will do seo also for that amount. However, if they are not informed then that is what they will expect.
          In the contract it says nothing about doing SEO. They asked about it, and I informed them about it, but that was it. I do have a suspicion that they expect me to rank them higher, and i'll have to tell them that's not what I'm doing.

          What I am doing, is simply marketing them through social platforms and giving them an online presence (or if they have one already, a better optimized one)
          {{ DiscussionBoard.errors[5724214].message }}
  • Profile picture of the author Jason Kanigan
    Hum. Another techie focused on keystrokes, hours and what you do for a living.

    News flash: your prospect doesn't care.

    You're not selling websites, facebook fan pages, etc. You're selling a steady stream of qualified inbound leads. That's what your client is interested in.

    How you get there does not matter. Write the company name in the sky with a plane and smoke? That's fine, as long as it works. Herd a bunch of giraffes through town with banners on their backs advertising your client? That's OK too. Just as outlandish as "putting a fan page up on something called facebook".

    The price of your solution should have nothing to do with the number of hours it takes you to make it happen. It should have everything to do with the value you create for your client. Start thinking about this. What revenue does your client get with the solutions you provide?

    The price for the solution to a $100,000 problem should be higher than that of a $10,000 problem...even if you do exactly the same thing each time.

    Prices discovered this way will always be higher than your hourly total.
    {{ DiscussionBoard.errors[5724660].message }}
    • Profile picture of the author BrashImpact
      Jrad,

      I would encourage you to look at two very distinct measurable results within the system.

      #1 - What is the percieved value by the client, the biggest challenge offliners face or newbies is How do I Charge? At this time we are still charging over $1500 for an Email Opt in Form and the Ethical Bribe. WHY? Because that's one thing a company can see instant value from. I am giving them a system with a push button ATM, not a Opt In Form.

      #2 - Which took me years to truly understand. The only difference between $500, $5000 and $50000 is a Zero. I am routinely having coaching students raise prices over and over and over. Too give you an idea, i have one student who was charging right in your ballpark for wordpress. His content is so good and so SEO friendly, I had him add $1,000.00 to his prices. Guess what?

      He is getting the same # of deals every month, however he is making an extra $7,000 to $10,000 a month by asking for it. His clients love him, and he routinely gets Incredible Reviews and Testimonials.

      Hope this gives you some insight, its about you deciding what your worth.
      Regards,
      Robert
      Signature

      {{ DiscussionBoard.errors[5724951].message }}
  • Profile picture of the author IngeniousBastard
    It's interesting but, psychologically, if someone pays you a cheap price for a website, in their mind they have a cheap website...

    Just something to think about.
    {{ DiscussionBoard.errors[5724991].message }}
    • Profile picture of the author Craig Dewe
      Originally Posted by kaniganj View Post

      Hum. Another techie focused on keystrokes, hours and what you do for a living.

      News flash: your prospect doesn't care.

      The price of your solution should have nothing to do with the number of hours it takes you to make it happen. It should have everything to do with the value you create for your client. Start thinking about this. What revenue does your client get with the solutions you provide?

      The price for the solution to a $100,000 problem should be higher than that of a $10,000 problem...even if you do exactly the same thing each time.
      Take the advice above to heart... it's worth a lot of money to your business.

      Stop thinking in terms of your effort and think in terms of the value you offer your clients.

      Sure knocking together a WP website is easy for us but your client is never going to be able to do it themselves.

      They want a solution that brings them clients... the end. Price yourself based on the value of those new incoming clients to their business.
      {{ DiscussionBoard.errors[5726977].message }}
  • Profile picture of the author payoman
    It's funny. It might take us 2 hours to buy a custom wordpress template, change a few graphics and put up a couple of photos, and we charge our clients $500 for the job.

    What people seem to miss is the amount of time actually learning about all these resources took. You didn't just wake up one morning and go 'well, I know of professional wordpress templates, can upload and optimize images using a free graphics program I found online, create backlinks through free tools I learned about online and rank a local website in 2 weeks'.

    All of that took time to learn and to locate the resources required to do it. So charge that much. The client would have to spend the equivalent amount of time going from asking themselves 'How do I make my own website?' to the wealth of knowledge and experience you have gained to develop their own wordpress site.
    {{ DiscussionBoard.errors[5726533].message }}
  • Profile picture of the author jRad
    Wow, so many awesome and insightful responses.. just awesome.

    I need big, brass balls like you guys have lol. Where did mine go!? I used to charge like I said, $1,500 for a basic html/css website. I was confident with that pricing, but also expected people to give me weird looks and question it (which they did).

    Now for a site that took me hours to learn about / find the resources, that's more complex than a static site, I'm low-balling myself. Gah!

    This is my goal. I want to know if this is realistically attainable (aka, if clients will go for it). Charge upwards to $1,500 for the website, then $100 / month to maintain it (hosting, domain name, maintaining social platforms).

    I'd love to be my own boss and make a living with this, but the key thing is to have enough clients to fuel the business!
    {{ DiscussionBoard.errors[5737079].message }}
  • Profile picture of the author befree22
    The maxim, "You get what you pay for" always applies, even in a recession. Don't undercut yourself and the rest of us but underpricing your services.
    Signature

    The turtle always wins.

    {{ DiscussionBoard.errors[5737232].message }}
  • Profile picture of the author jRad
    My biggest thing is this - the client just cares about getting more clients for themselves.

    My whole thing is, I can't guarantee them clients - however, I can certainly get them exposure through promoting their website. I can certainly give them an online presence (or better yet, or better designed online site if they already have one).

    If most people in the end care about clients, and don't necessarily care about the website perse (they just care about what can get them business), how would you sell that through simply giving them an online presence?

    For example..

    Client: "so it's $1500 for the site. How is that going to make me money? How is that going to get my phone ringing off the hook?"

    I usually just say "I can get you exposure, I can market your website for you". I can never come up with a better answer, because like I said, I can't "guarantee" them clients.

    Any suggestions?
    {{ DiscussionBoard.errors[5737695].message }}
  • Profile picture of the author Jason Kanigan
    Go read this post in John Durham's Telemarketing Forum.

    It has literally changed people's lives. You should easily be able to modify the approach there to your business.
    {{ DiscussionBoard.errors[5737718].message }}
  • Profile picture of the author Seantrepreneur
    I'll be totally honest here man, the first website I did I charged $300 for it and it took me a while. I used Homestead.com to build it because that was all I knew how to use. Although it wasn't horribly ugly it also wasn't the sexiest thing on the block either, but the client really liked it.

    I'm an Social Media, SEO, Google Places and Rep Management kind of guy. I don't really like building websites. So anyways, I smarten up and started outsourcing the websites. Because I outsource them now I am forced to charge more which has been a blessing. I've found a couple sources that provide great looking websites for $400-$500ish and charge AT LEAST $900 and we have a proposal that's looking like it's going to close for $2,500. Keep in mind that I do ZERO beside making the sale and connecting the dots. I don't build, design or write content for these sites.

    So the moral of the story is don't be afraid to charge more for your work. It's MUCH better having a couple clients paying you more than a lot of needy clients paying you a little.

    Hope the helps!

    Sean
    {{ DiscussionBoard.errors[5738075].message }}

Trending Topics