I explained the value of the direct contact he is getting by using SMS, but still seemed put off by the price.
I'm paying $0.03 / message with my provider now. So to send 10,000 messages it is going to cost me $300. Is it too cheap to let him do this for $450 plus the cost of keywords. That is about $0.05 / message. I'm going to charge him $10 per keyword and he wants 6 keywords.
So, I'd be charging $510 / month and profiting $198 / month.
Any thoughts on how to setup the initial charge as well? Should I tell him it is that price from the start? Or put out guidelines on when the price jumps based on the number of messages he is sending?