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Thread: Charging what you're worth -VS- Clients Payment - ..I'm losing the battle.

  1. #1
    Massah o de obitwang narcisis's Avatar
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    Charging what you're worth -VS- Clients Payment - ..I'm losing the battle.

    Hey fellas,

    I'm in a little of a predicament and I'm sure all of you have heard this kind of story time and time again.

    I lowballed my price for a client to get the project. Actually this client has given me work before, a few times, and each time I lowballed my price because "he couldn't afford that price right now".

    Now I'm going to revamp another site for him and I'm baffled as to what to charge this guy. I wanna say $500, for his previous web site I revamped I only charged $275 - quite a jump. So yea, I'm stuck in the endless struggle of charging what you're worth.. and I don't think I'm winning..

    BTW - the site I only charged $275 for, I did the whole nine, I even redid the default plain looking "Add to Cart" buttons.
    Mastering Flash is easy..
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  2. #2
    SPAMMER
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    i would try and make it seem like you offered him a very low price at first, to prove what you can do, and now you have proved yourself you are chargin slightly more, but that he is still gettin a damn good deal. Not sure if that makes sense

  3. #3
    Senior Member MG315's Avatar
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    i agree with jaybirch. tell him that you charged a low price first to take away the doubt he might have in hiring you for the first time, but now after you have proven yourself to him you need to go back to your normal rate. also (if possible) tell him how the quality of the work is better this time around then last time.

    whatever happens, just make sure you're not working at a loss (the small amount of money you are being paid is less than what you need). If necessary, outsource the job and tell him you're doing it. "Well last time I quoted so low because I wanted your confidence in my work. I really need to charge my normal rate for this work, which is [insert price here]. If that is too much, I can find a friend who can do it for less, but i cant guarantee the quality will be as good as the first site i did for you." Just make sure the outsourcer doesnt outperform you
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  4. #4
    tell me, is this sellable..... OddDog's Avatar
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    this is a losing battle.

    you made a basic mistake. You are now seeing why it is a basic mistake.

    In my opinion you are in a terrible position. You try to explain to the client the increase in price adn in the end the only thing the client sees is that you are increasing price.

  5. #5
    Harry Tuttle phantomflanflinger's Avatar
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    You're charging too little, globally. Try offering him some extra stuff that might impress him - costly extra stuff.

    BTW mastering Flash isn't easy, or there'd be no point.
    We're all in it together

  6. #6
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    When marketing New products most companies start high and then come down. It's a business standard dating many years back. This is especially true of new technology or when your demographic target is the affluent.

    Why? Because its easier to go down then come up. Its the same affliction that befell all the FREE content sites when they realized to survive they had to charge a membership fee. There was an uproar. Also created the mass exodus from Napster when members heard of future pricing initiatives.

    In sales (whether a service or product) your always taught to start high then [only if absolutely necessay to make the sale or close the deal] make a lower tempting offer with a plausibe explanation for the discount as not to lock yourslef to the lower price in the future negotiations.

    Example: (Car sales, Computer sales, Financial Services)

    Client: Wow... that price is a little steep. I'm not sure if I could afford that right now.

    Salesman: Let me talk to the manager and see if we could work something out. Give me a second. [ Comes back in a few minutes] Your in luck sir after speaking to the manager...

    Example: (Web Design or similar services)

    Client: Wow... that price is a little steep. I'm not sure if I could afford that right now.

    Designer: Actually the price I quoted you is lower than I normally charge. Condsidering we'll be doing more business in the future and I could use a (furniture, retail, pet store) in my portfolio I think I can make an exception this month and do it for $XX.XX But if anybody asks you what price you paid, tell me I charged you [ original amount ]. I don't want everyone to think this is my usual price.

    WHAT ABOUT THE CONTRACT?: On the contract I put my original price and then the discounted price with the excuse for the discount. Protects you from the client and his referrals in future negotiations as the contract states your original pricing.

    I have used many varations of these techniques through the years. Each and everyone was different and unique to the situation as they were different variables involved such as client, project, timetable, personalities, budget, and other factors.

    If they come back looking for the discounted price in the future I remind them of my orignal pricing and why I gave them a discount price at the time.

    Just remember not to let your client lock-you-in to the discounted price... if any.
    "Believe your beliefs and doubt your doubts."

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  7. #7
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    Fantrom.. excellent suggestions about adding a section in the contract stating the discount.. to go one step further, when it comes time to send the invoice.. show the discount there as well..

    put the regular price, show the total for that price, then apply the "discount" you gave.. he'll notice 2 things.. his final price, and how much he saved.. One thing I've learned, he could spend an extra $500 with you, if he see's a discount of $350, he's not going to know he spent more, he's going to think he saved $350.

    That's a good method of getting what you are worth, while at the same time, making the client think you are giving them the best deal.

    If you charge $1000. That might be a fair price... to you. The client doesn't know what's involved.. and s/he might think it's a very high price. But.. if you tell them it's $1500, but you'll give them 33% off, he's going to think that $1000 is a great deal cuz you just saved him $500.

    Before quoting this guy for a new site, find out what he wants, and then find out what you can add on top of that, as someone else suggested, make up that extra $250 on features.. might take you 2 hours to add the "features".. and you'll get the amount you deserve.

    Best of luck to ya.
    ..tween this

  8. #8
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    A good rule of thumb is never go down on price unless you also take something away.

    For example, we bid of project for a local chamber of commerce a while back at around $5000. They told us that it was beyond their budget, so we asked them what feaures they could live without and re-bid it at a lower cost. By doing this, we reduced the amount of hours required, but our margins remained the same.

    Now I'm going to revamp another site for him and I'm baffled as to what to charge this guy. I wanna say $500, for his previous web site I revamped I only charged $275 - quite a jump. So yea, I'm stuck in the endless struggle of charging what you're worth.. and I don't think I'm winning..

    BTW - the site I only charged $275 for, I did the whole nine, I even redid the default plain looking "Add to Cart" buttons.
    You sound a lot like me when I first started. I had no idea how long it would take me, so my quotes were just wild guesses based on what I thought was reasonable. If you are going to be successful in bidding projects, you must know how long it will take you and what you want to make for each hour of work.

    For example, I know that a custom design will take me 18 hours (that's one mockup and 2 revisions). I also know that to slice the mockup and do all the HTML/CSS coding will take me another 7 hours. So if someone asks me to do it for less -- well that's like your boss coming to you and saying, "I know we pay you $12 an hour, but we're a little strapped at this time. Could you work for $8 this month?" What would you tell him?

  9. #9
    Senior Member RUSHVision's Avatar
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    Originally posted by johntabita
    So if someone asks me to do it for less -- well that's like your boss coming to you and saying, "I know we pay you $12 an hour, but we're a little strapped at this time. Could you work for $8 this month?" What would you tell him?
    GREAT analogy!
    mrush


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