We would be positioning our web-designs as high-quality and high-conversion designs, and so we won't be going for the lowest price.
After doing some price research on competition, I found out that there are companies selling websites from $400 (static templates) to $5000 (custom high-end designs).
Our direct competition sells web-sites for around $1500 up-front, which then usually goes for other up-sells as SEO and keyword based mini-sites.
So, my question: (assuming we sell a site for $1500)
Would it make sense if we offer a similar package for $125/monthly on a 12 month contract, with no-upfront cost?
I'm guessing we'll have a higher conversion rate by following such a model, because it would be much affordable for local businesses.
The downside is, we'll have to bear all the costs for a while - but that's a risk we are willing to take.
Will this model work? or are there any loopholes which I haven't seen?