Did some pricing research - asked potential customer

12 replies
So today my wife and I had a booth at a local bridal show (she owns a video production company taping weddings and such and I help her out). I figured while I was there, I'd walk around to other vendors, strike up a conversation, and talk about mobile websites.

You can't do too much of that, though, because vendors hate getting "sold to" by other vendors...including myself.

But anyway, I did talk to a woman who owns a teeth whitening and tanning business. We talked about her company for about 10 minutes then we talked about websites. Well, to make a long story short, I told her I was getting into creating mobile websites and was doing some research for the best price.

I asked her if she'd rather pay one set price, a price per page, a monthly fee, etc.

She told me that SuperMedia (I think that's what they're called....but it's basically YellowBook) said they'd create a mobile website up to 11 pages for $29.95 per month (1 year minimum). They're selling it as the site is free and the customer just pays for hosting.

I was like....hmmmm.

I then told her that one of the pricing structures I was thinking about was building the site for free and then charging $19.95/mo for hosting.

Continuing....I then asked her if she would rather pay one set price for a site...$10.00 per page for instance...and be done with it, or pay monthly like Yellow Book is charging.

She said she'd rather pay monthly.

That wasn't the answer I thought she'd give....but I'm thinking that maybe it's easier for small businesses to budget a smaller monthly fee than it is to come up with a larger payment all at once.

She had some customers stop by so we had to end our conversation. But at least I was able to do some real pricing research just to see what the market would bear.

I have a few appointments this week so just to get a few sites under my belt (and possibly keep my foot in the door), I'll promote a free site up to 8 pages and $19.95/mo with min of one year contract. That's $240 per client and I would think that $19.95/mo would be a no-brainer.

What are your thoughts?

Mike
#asked #customer #potential #pricing #research
  • Profile picture of the author WillR
    Mike,

    There's no need to choose one or the other. Why not offer both packages right next to one another and the client then gets to choose what best suits them? I have always just gone for the money right upfront but I know of others who are very successfully using the free plus monthly hosting packages.

    You could price the standard package at $297 and then have a monthly option where they pay $27 per month (minimum 1 year contract). That a total of $324 for the first year. It's a little more expensive than the one-time payment but that is how it should be. They should pay a little more for the convenience of paying it off over a longer period of time.

    I also think at $10 per page you are massively underselling yourself. It really depends what you think your time is worth. If you are happy to spend a few hours putting together a 5 page website for $50 then so be it but I really think you are selling yourself short. If you enter the marketplace with prices like that it will be very hard for you to ever start charging a decent amount.

    If a business is not willing to invest at least $297 in a mobile site then they really are not worth my time. Having a mobile site is no longer a choice it's something every business is going to need. Even at $297 it's an absolute steal. With a 5th of their customers already visiting on mobile devices it's a tiny price to pay.
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    • Profile picture of the author keliix06
      Originally Posted by WillR View Post

      With a 5th of their customers already visiting on mobile devices it's a tiny price to pay.
      That's going to depend heavily on the business. 0.3% of our visitors are on a mobile device.

      Agree on the other points though
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  • Profile picture of the author mrcouchpotato
    Originally Posted by WillR View Post

    Mike,
    You could price the standard package at $297 and then have a monthly option where they pay $27 per month (minimum 1 year contract). That a total of $324 for the first year. It's a little more expensive than the one-time payment but that is how it should be. They should pay a little more for the convenience of paying it off over a longer period of time.
    I like that idea and think that I'll use it. How many pages do you think that price would be for?

    Originally Posted by WillR View Post

    I also think at $10 per page you are massively underselling yourself.
    Sorry, that was just an example. I would definitely charge more than that if charging per page.

    Originally Posted by Modular View View Post

    To charge on a monthly basis is a very good for steady income and long-term relation, but all you charge is only $19 and you still need to host the site
    How much you have left after hosting?
    Actually, the hosting wouldn't cost me anything. I would set them up as a subdomain on my regular domain. I can have unlimited subdomains.

    Originally Posted by Modular View View Post

    I personally do not like the WYSIWYG web sites, they are simply not unique enough.
    I start to build my clients websites that fit their brand so they get a strong brand recognition and top unique look (I'll soon upload some examples)
    I'd love to see some of your examples for some inspiration

    Mike
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  • Profile picture of the author Nail Yener
    Originally Posted by mrcouchpotato View Post

    Continuing....I then asked her if she would rather pay one set price for a site...$10.00 per page for instance...and be done with it, or pay monthly like Yellow Book is charging.

    She said she'd rather pay monthly.

    That wasn't the answer I thought she'd give....but I'm thinking that maybe it's easier for small businesses to budget a smaller monthly fee than it is to come up with a larger payment all at once.
    Mike, thanks for sharing your real pricing research results with us, we really do need more such posts on the forum. I don't think we can see the average picture with one case but it gives us a good idea about the market.

    I wouldn't expect that answer as well. But I have an idea and perhaps this is the reasoning behind her answer.

    I think, when she pays a monthly fee, she feels safer in terms of support for her mobile site. I mean, she probably thinks that when she pays monthly, the company or the guy who provides the mobile site will have to take care of any further problems, maintenance and update issues. This totally depends on the agreement between her and the provider. I don't know but I guess most of the time, such business owners believe that they will get free support when they pay a monthly fee that's why she prefers it.

    If you will go with the monthly payment structure, you need to make everything clear and write down all the terms and conditions so that she wouldn't expect any extra free additions/updates etc. for her mobile site apart from the necessary basic technical support you have to give her since you will be hosting her site.
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  • Profile picture of the author Neil B
    My mobile marketing landindg pages start at £165 (GBP not Dollars) and thats for TWO PAGES...I aim for around £80 per page which allows for a little movement should the client want to haggle ;-)...for examle I did a deal this week for a 10 page site for £699 (£69.9 per page)...so just be careful when committing to a pricing policy Mr C as it's easier to come down than go up ;-)

    Neil B
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    • Profile picture of the author cottonking2000
      Mobile web is awesome but only under such conditions:

      1. Mobile local search
      2. Mobile local search with click to call.
      3. GPS based local search with click to call.

      Mobile web is fine but you will not have anymore people going to your mobile web than your non mobile web unless you change your product around - for better or worse.

      CLICK to call is where it is at right now.
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      Need 100's or 1000's of New customers a month? Watch this video. ADT Video Kuggaa mobile product Busicall.com inventor/programmer top tech products demo.com 199.99 for 15 month subscription Money back guarantee if not satisified! Email me for more info. I have customers getting over 6,555 Calls, emails, hits, direction requests and more a month!
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      • Profile picture of the author mrcouchpotato
        Originally Posted by Nail Yener View Post

        I think, when she pays a monthly fee, she feels safer in terms of support for her mobile site.
        That may be true. I just wish I had time to discuss it more with her. She seemed pretty open about everything. Funny thing is that her office is in a mall that only 20 minutes from here so I'll probably drop in on her some evening just to say "hi" and build some rapport. Maybe even get my teeth whitened

        Originally Posted by Nail Yener View Post

        If you will go with the monthly payment structure, you need to make everything clear and write down all the terms and conditions so that she wouldn't expect any extra free additions/updates etc. for her mobile site apart from the necessary basic technical support you have to give her since you will be hosting her site.
        This is true and one of the main reasons why I recommend Will's WSO. It includes a 6 page service agreement for mobile websites and covers these types of things.....along with a ton of other stuff. You can check it out at.

        http://www.warriorforum.com/warrior-...available.html

        No, this is not an affiliate link.

        Originally Posted by Neil B View Post

        My mobile marketing landindg pages start at £165 (GBP not Dollars) and thats for TWO PAGES...I aim for around £80 per page which allows for a little movement should the client want to haggle ;-)...for examle I did a deal this week for a 10 page site for £699 (£69.9 per page)...so just be careful when committing to a pricing policy Mr C as it's easier to come down than go up ;-)

        Neil B
        Thanks for the pricing examples. This definitely helps. Once I get a few sites done and confidence built, I'm sure my pricing will change.....once I decide what it officially is for now.

        Originally Posted by cottonking2000 View Post

        CLICK to call is where it is at right now.
        I'm not really sure what "Click to call" is. I'm assuming that you put a button on the site that calls a number when tapped. This is automatically done if my cell phone sees a phone number on a webpage or email (as long as the number is in text format and not a graphic). Is this what you mean?

        Mike
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  • Profile picture of the author bose025
    Banned
    Thanks for the pricing examples
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