Loosing hope - need some advice

by els
4 replies
  • WEB DESIGN
  • |
Hello fellow marketers and designers
I'm creating this post due to a bit depressing mood lately in my company and I would like to hear some responses from You regarding this situation. Sometimes a stranger's perspective can do wonders and maybe some of You have similar experiences.

A few words of introduction:
We are a small Eastern-Europe web/marketing agency that focuses on small and medium businesses - providing standard web/design/print services. We deliver a solid 8/10 quality with great customer support. Definitely well above the average standard on the market. We work on the market for several years now.

The problem:
The customers/business owners in our country have no idea how much a professional, well designed website should cost to create and maintain. There's also a huge freelance market that usually provides poor quality services with a low price tag. This creates a huge misunderstanding in what quality is and how much should it cost. How bad is it?

Here's an example:
  • E-commerce website with 500+ products
  • custom layout design
  • logo design
  • responsive
  • 4 languages
  • custom search
  • e-payment integration
  • SEO
Budget: ~100-150$
The sad part? You still get people cutting the price down below that point.

Why does it frustrate us so much?
Now I understand you can't please everyone, but when 90% of job offers are like the one above, we have a problem. We refuse to tell the client lies about "amazing marketing effects" with a 30$ website that he will not do anything with for years. But with such overwhelming price dumping it makes us look like the ones trying to "milk" the customer.
  • We have been called "thieves" and "liars" by a number of people/companies,
  • even when faced with solid arguments, the client will still believe in 10$ unique and professional design.
  • despite having a lot of job offers (great portfolio) 90% don't generate a lead due to price,
  • we still charge less that we should for the work put in,
  • as we are a legal business it makes it sometimes hard to make ends meet,
  • we think with our knowledge, service and experience should earn way more we do now.
What have we tried to do to counter this:
  • weekly marketing and web oriented articles,
  • articles explaining our design process and why the cost is what it is,
  • sending informational material when responding to a lead,
  • introducing a monthly subscription for full agency service for their company.
Still it has not gotten any better.
So I would like to hear your thoughts regarding our situation. We definitely don't want to to joint the "I will do everything for 10$ marketing god" rat race. Though at this point we are only left with closing our agency and moving on since customers around here prefer low quality, sometimes plain ugly but cheap designs.
Thanks in advance.
#advice #clients #dumping #hope #loosing #low prices #webdesign
  • Profile picture of the author vinxxv
    I feel you.... But I'm sure you'll be able to find a client that is willing to pay for what your service(s) is worth.

    Have you tried marketing your services locally? I've gotten local clients that are willing to pay my "standard" rates. These standard rates will vary in different regions... Now, if I'm able to do it, I'm sure you can too... Just stay positive and go for it
    {{ DiscussionBoard.errors[10343190].message }}
  • Profile picture of the author waynmeyer
    Hi Els, you seem like a genuine developer with a quality service. Whilst the competition is fierce in web design due to low cost bad designs & service, its evident that there is loads of space for the quality developers that deliver a truly professional service.

    However, as a smart developer and entrepreneur, i personally take the opportunity to dive right in the middle of the competition, what i mean by this is i prefer to design applications that offer a service as the middleman between the client and professional rendering the services. This way no matter what you going to develop a business that not only is self sustained, but also easier to scale in the marketplace. Creating a marketplace is the best way for me to focus on the business aspects and grow simultaneously.

    I find membership websites a great way to generate recurring income, its simple to manage and you need not work as much when comparing your ROI.

    Now i know that developing one of these applications is not simple, managing the servers, load balancing, algorithms, metrics, GUIs and much more. I personally help people develop these applications from scratch and teach them how to scale a business from home without having to break your neck in the process. I often do joint ventures with individuals whom can market the platform, i sell entire businesses worth thousands of $'s, sometimes its better to sell a business rather than a website for a client.

    My main aim is to always do as least work as possible and automate my business as much as possible so that i can scale exponentially. Take no offence, however i feel you putting in way to much effort in the wrong places. Cheap clients and business websites are fading so fast, with the rise of DIY website builders its only going to get worse each Quarter.

    I hear you, and i understand your position, its best to change direction and business model now while its early. The growth of membership services and marketplaces will always be extremely hard for novice users to replicate, thus protecting your market. Stick out the vulnerable niche and you will be safe with many smiles to come.

    Hope that helps your choices.
    {{ DiscussionBoard.errors[10345401].message }}
  • Profile picture of the author wooninjas
    You should stop using marketplaces like Elance/Guru etc. immediately and start looking around on forums like warriorforums and other marketing forums. Also, don't forget Twitter and Linkedin. Lots of business out there. Good luck :-)
    {{ DiscussionBoard.errors[10345635].message }}
  • Profile picture of the author c00p
    I absolutely feel your pain my friend. My design and developer skills are only average, but I've done SEO for the past 5 years and seen pretty much every aspect of it. I've worked in corporations(it sucks), I've worked in smaller companies(lacks coordination and resources), I've worked for myself(no guarantee for income). I am here to tell you that even the greatest developer can only go so far by himself.

    In my opinion, what you need is a union. You say you work in a company - that right there gives you an opportunity to be picky about your staff. Choose people that are just as passionate as you are and make sure you can trust them and be able to work WITH them for the long run. If you can't enjoy working together and keep a friendly-professional attitude at all times, just stay the hell away from them. More so, you don't need a big team. A programmer, a designer and an SEO alone can do wonders.

    Just think about how Apple has started out. Facebook too. Lots of other examples where college graduates fired up their game and worked as a union to form what we now recognize as market giants.

    And finally, as you can find in another comment here, look locally, but explore all your options for outreach. If things work out for you, the next step for you would be to INSIST on bringing quality to customers, not playing by the market's game. The market is crap, I know. What you need are TARGETED clients, ones who will be loyal. Do everything in your power to keep them. Trust me, the word spreads out like wildfire, so long as your intellectual property has quality and breaks the mainstream standards of $10 services.

    Hope this helps. Keep your head up, soldier on and good luck!
    {{ DiscussionBoard.errors[10346510].message }}

Trending Topics