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Uk marketers (Offline question...)

by butters
11 replies
I read all these posts on here about offline but they are normally based at companies in the US and the US has a much bigger audience. So here is my question, if I was to offer something along the lines of, setting domain and hosting, installation of a website, research, SEO, basic PPC, maybe some video... What sort of price point would you charge? My home town isn't exactly massive, about 70k population but there are some surrounding areas close by which I could expand in to. Would pricing remain the same as the US roughly, I just assumed that they maybe different because the size of population here.
#marketers #offline #question
  • Profile picture of the author Kelly Verge
    I'm not in the UK, but I can say with certainty that the primary factor for your rates should be what you can deliver, not how much competition your clients have (which is really the issue with a smaller population).

    If a new customer is worth (currency of choice)5,000, and you can bring in one or more per month, you're seriously undercharging at 500.

    If a new customer is worth 500, you'd be overcharging at 5,000 unless you can bring in 20-30+ new customers per month.

    Finally, do businesses in your area advertise? How much are they paying for these ads? I'd bet they are just as expensive if not more so in the UK as in the US. Find prospects that are already advertising and they won't have problems paying for your services.
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  • Profile picture of the author Pat Ordenes
    also, don't forget to call your competition and get some quotes!
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  • Profile picture of the author Andyhenry
    Hey Butters,

    I'm in the UK.

    Here's what I see.

    The average cost for a standard 5 page website with flash header is around £800.

    The average cost for SEO (on and off page) is around £800 a year.

    Blog installations etc.. charge an hourly rate you're happy with.

    Anything above and beyond that - charge whatever you feel is right for what you're doing for the customer and the value they see.

    With that said - this isn't how I work and I charge anything from zero to £3000 for a site and anything from £50 to £500 a month after that.

    I've recently done a site for free (they still gave me £500 and a bottle of rum to say thanks) and £500 a month for marketing.

    With a different client I'm working with now - their focus is on the benefits of an autoresponder because we can see how it will immediately get them more business, so the site is only £800 upfront and then £50 for hosting and email AR. Then it'll just be the cost of my time as I spend time working on their email campaigns and AR messages.

    It's really up to you to decide what they need and what to charge.

    I usually avoid talking about money until after we've already established that they want me to help them.

    Andy
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    • Profile picture of the author leonardpayne
      Originally Posted by Andyhenry View Post

      Hey Butters,

      I'm in the UK.

      Here's what I see.

      The average cost for a standard 5 page website with flash header is around £800.

      The average cost for SEO (on and off page) is around £800 a year.

      Blog installations etc.. charge an hourly rate you're happy with.

      Anything above and beyond that - charge whatever you feel is right for what you're doing for the customer and the value they see.

      With that said - this isn't how I work and I charge anything from zero to £3000 for a site and anything from £50 to £500 a month after that.

      I've recently done a site for free (they still gave me £500 and a bottle of rum to say thanks) and £500 a month for marketing.

      With a different client I'm working with now - their focus is on the benefits of an autoresponder because we can see how it will immediately get them more business, so the site is only £800 upfront and then £50 for hosting and email AR. Then it'll just be the cost of my time as I spend time working on their email campaigns and AR messages.

      It's really up to you to decide what they need and what to charge.

      I usually avoid talking about money until after we've already established that they want me to help them.

      Andy

      Andy,

      God stuff there. I assume that those figures are substantiated but they certainly feel about right to me.

      HOWEVER ... that's only thinking in the context of having a portfolio of services which you can offer like a menu.

      I'm not convinced that this is the best way forward (but sometimes it is the ONLY way forward..) I would much prefer to sit down and actually listen to the story. (Every company has a story and every company has a person who 'knows' or 'holds' the story)

      Once you understand the story then you can present 'yourself' and not a service and you become the 'can do' guy who commands much more that these figures.

      I would be looking at £2500 for set up and £500 per month retainer at minimum.

      Again, if you are struggling for a 'way in' then the 'menu' approach may be wall you have.


      Butters --- "Why only 20%?? - Because it's not your company. Easy.
      If someone came to me and my company and offered to add 100000 to my bottom line nett for 50% I would tell him to stuff it. Yes I may lose the extra 100000 but I don't let anyone treat my company like a shyster

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      Leonard
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  • Profile picture of the author MrYossu
    Originally Posted by butters View Post

    I read all these posts on here about offline but they are normally based at companies in the US and the US has a much bigger audience. So here is my question, if I was to offer something along the lines of, setting domain and hosting, installation of a website, research, SEO, basic PPC, maybe some video... What sort of price point would you charge? My home town isn't exactly massive, about 70k population but there are some surrounding areas close by which I could expand in to. Would pricing remain the same as the US roughly, I just assumed that they maybe different because the size of population here.
    May I suggest you look at this the other way round?

    Don't start by thinking how much you can charge, start by talking to business owners and getting a feel for how much you can benefit their business. If you can offer something that will increase their bottom line by £10,000 per year, then you can easily charge them £2,000 for that, as they'll still make a great profit on it.

    Look for monthly fee ideas, like SEO and autoresponders. Give them some monetary benefits, and as long as you're not asking for more than about 20% of what they'll make, they will be happy to pay you.

    Hope this helps,
    Alan
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    • Profile picture of the author butters
      Originally Posted by MrYossu View Post


      Look for monthly fee ideas, like SEO and autoresponders. Give them some monetary benefits, and as long as you're not asking for more than about 20% of what they'll make, they will be happy to pay you.

      Hope this helps,
      Alan
      Why 20%? If I can take 1 business from 1k to 10k a month and all they are doing is paying me a monthly fee and I do the work. Why would should I settle for 20% and not take 40% or 50%, they are essentially do nothing except shipping the product and dealing with customer enquirers etc...
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      • Profile picture of the author Myles Sinclair
        Originally Posted by butters View Post

        Why 20%? If I can take 1 business from 1k to 10k a month and all they are doing is paying me a monthly fee and I do the work. Why would should I settle for 20% and not take 40% or 50%, they are essentially do nothing except shipping the product and dealing with customer enquirers etc...
        Because that product they are shipping costs them money. Maybe as much as 50% or more of the sale price. So if you take 50% they end up working for nothing or even lose money!
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        • Profile picture of the author butters
          Originally Posted by Myles Sinclair View Post

          Because that product they are shipping costs them money. Maybe as much as 50% or more of the sale price. So if you take 50% they end up working for nothing or even lose money!
          I was talking in the context of profit, meaning, all costs have been deducted...
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      • Profile picture of the author MrYossu
        Originally Posted by butters View Post

        Why 20%? If I can take 1 business from 1k to 10k a month and all they are doing is paying me a monthly fee and I do the work. Why would should I settle for 20% and not take 40% or 50%, they are essentially do nothing except shipping the product and dealing with customer enquirers etc...
        Apart from the other answers you've been given, I would say that 20% is a good balance between being rewarded for what you have done to their business, and not ripping them off. The figure was a very loose one, based on what I often use.

        In theory, if you were increasing their profits, then they would be happy to pay you 90% of the increase, as they're still making an extra 10% compared to before. In practice, it doesn't work that way. They have to think of how much effort they have to put in for the extra money, and they will also consider how much effort you are putting in (or how much they think you are putting in), and balance that as well.

        Each business is different, as is each business owner. Judge each one and see what you feel is fair. Remember, you are there to help them, not to rip them off.

        Ta ra
        Alan
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  • Profile picture of the author Riz
    Hi Butters,

    There is no clear cut answer to this.

    You can choose 2 routes:

    1) Offer your services in packages with set pricing

    2) Do not have set prices and charge according to the value you can provide the client which of course varies client per client.

    Riz
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  • Profile picture of the author Steve Peters Benn
    Whilst I agree with what Alan is saying, you are there to charge what you feel you are worth - they are there to say yes or no.

    For instance, if I find a client who can only pay £100 a month, it is up to me if I take them or not. I might take them on personal / compassionate grounds - but it wouldn't be a business decision and the majority of my clients could not be made up of people who are unable to pay.

    They (the prospect) would not provide their services or products to you at a 'fair' price. Just ask them. Fair is subjective, and often means 'low'.

    Your concern is - how much value / return on investment can I deliver. If they argue over pricing then you have either not demonstrated significant value in what you can offer or they are trying to see if they can squeeze you.

    There are some very immoral clients out there who look for new companies and providers to take advantage of. People who will acknowledge they have gotten use from your services, but won't pay. There are people who are perfectly able to pay, but will wait until you take them to court to pay up.

    Your pricing should always match the value you offer.

    If you offer nothing more than the next guy - don't be surprised if you can't charge more.

    Look at what others are charging (or go with Andy's ballpark figures) - then ask are you delivering more or less value.

    Don't hide your prices nor should you hide the value you can offer. If you can't bring genuine value - then that is ripping them off. That is wrong.

    Long story short, they are looking for a good return on investment. If you can give them that, then you are valuable. If not, you will scrabble to get business or get forced into price matching.
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