Package Deals vs. Tailored Quotes?

4 replies
Warriors,

In my existing web design business, I tailor my quotes accordingly to each potential client.
But recently I've been burned by spending time with clients working out how much their project will cost only for them to run off to a competitor who is offering a package deal matched to what I'm offering them.

I'm thinking maybe offering a combination of packages and tailored quotes for some clients.

Does anyone have any experience with offering package deals instead of tailoring quotes?
#deals #package #quotes #tailored
  • Profile picture of the author misterme
    I found the issue with quotes is in letting the prospect off with that number because they'll either accept it or shop it, which is what you're experiencing. So I started presenting the quote by line itemizing the items, having them see what the regular values are so they can see how much it costs, and THEN giving them a package price. Then you close - and this is the critical part:

    You've got to get them talking about it. Don't accept "OK, thanks. We need to think it over" as an answer. Even if they say that, you've got to get the conversation back to figuring out the package. I often respond with, "OK, do we need to change anything? Because the price is based on what you've told me (showing them the line by line items) so if you need something a little more or a little less all we have to do is tweak what those items are. What can we change here?"

    And that's when if they're really interested they're going to say how it's a bit more than what they expected or comfortable with and maybe they can do without or less of something you have in the quote. Lead them through that process. So now you can go back to figuring out a more suitable offer - and have another shot at closing the deal.
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  • Profile picture of the author bsummers
    Agree with MisterMe. Itemize your services so that it would be easier for you to create a package. For us, we categorize our services and qualification so that it would be easier to create a package. For example, for lead generation for software firms, we charge this amount if they require a database we add additional. Creating brackets is one way to may it more convenient to you.
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  • Profile picture of the author Pragmites
    It really depends on how you plan to sell your services. If your going to be selling services on your website you almost have to have packages.

    If its more local driven and your meeting clients face-to-face then it could make sense to offer custom quotation.

    From our experience selling package deals is more scalable. You know exactly what you need to deliver each month and you can have a team of outsources complete the tasks for you..

    Both ways can be profitable..

    Initially, we built very customized packages based on our clients requirements. So if they needed SEO,Adwords and a Blog we would quote them accordingly. This certainly helped us upsell and increase the average value of that client.
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  • Profile picture of the author CageyVet
    I offer a bit of a combination of both packaged quotes with custom pricing on top. This is done by having a set up basic levels for your web design service that tier upwards. So tier 1 is a basic template design, tier 2 is a basic website, tier 3 is a basic business website, tier 4 is an advanced website, tier 5 is an basic ecommerce site and tier 6 is a basic corporate website. You have written down what basic web design elements/features you will provide for each tier and you assign each of these tiers a packaged pricing starting point, which is your normal tailored starting price point.

    Then when you go to your client meetings, outline what it is the client will get with the tier that fits them the best as well as the tier above and below. This way they have an understanding of a cheap and a more expensive version.

    Then when you talk to the customer misterme mentioned, you explain to them that if they are looking for something above and beyond the basics of a tier, then there will be the need for some custom work that is an extra cost which will be tailored to their individual company. IF they do not like the cost of a higher tier with the extras you are tailoring for them, then you can explain to them that maybe a lower tier might work with the same extras...which would cost them less but get them less of course.

    I find this model work well because it gives the customer a good indication of how much different levels of web design cost out of the gate, plus it still allows them to feel like they have a custom website that fits their individual needs. Also, it allows you the ability to charge what you are worth for the harder design elements and addition features.
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