SayWhatNow

For those that are in the offline business, how do you come up with your pricing? For a simple website do you have set rates? Do you go by how much you think the company is worth/can spend? Just trying to get ideas from others on how to proceed.

Wicked Ice

Sam Lifton - Price Point Report

How To Set Prices

The website is down, or maybe he is no longer in business.

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blureach

Based off hourly rates.

Think about how much time you are going to spend.
Then think about what your hourly costs are and determine what you want to make/your premium and determine an hourly rate to bill.

My company bills 50/hr for social media services and 75/hr for web services. SEO we package it based on what needs to be done.

Time X Rate = Baseline Price

Once you determine this baseline price, then you can modify your pricing based on supply/demand and ability to sell. If you get no price objections in your sales, you need to increase pricing.

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beamup

I set rates depending on my clients. I am planning to do website design for local market and this would be very cheap. I might now even get 30% profit but I am targeting large locales. It also can be based on hourly basis. But in my place, we do it by the amount of work as a package. I think blureach is somehow right with the equation:
Time X Rate = Baseline Price

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Wicked Ice

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"I work 80 hours a week just so I do not have to work 40 for someone else." --Erik Kimel

blureach

You can always use game theory...

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SayWhatNow

Thanks everyone for their input. I think I'm going to bid low to try and get the contract. Then I'll upsell social and SEO. Thanks for link wicked.

guerilla

Estimating is an artform.

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Kiopa_Matt

It's 100% dependent on who you know, how old your company is, how good of a bullshit artist (err... salesman, I mean) you are, etc. For example, I've seen companies sell an Access database and Word templates for $40,000 to government agencies, and know people / companies who could provide a FAR superior solution for $3000.

Technology is 15 years out of date, and an all around hunk of shit, but doesn't matter. The company has been selling the same thing since 1980, so they figure they must know what they're doing, and go with it. Plus it's $40k, and their salesman is a good bullshit artist, so it must be good!

Short Answer: Whatever they're willing to pay.

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flaw3d

Exactly what Kiopa Matt said.

It's how good you are of a salesman or B.S Artist.

I see people selling flash site templates for a few grand. I see other people selling wordpress sites for $400. Just depends on your prospect and what your capable of pulling off.

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kingdexer

^^ really can't put it any better

guerilla

I don't think successful business people would agree with this. I certainly don't think it is wise for people advertising their own products to walk around saying that price and value is based on bullshit.

All prices are subjective, and subjectivity is not bullshit, it is the human method for interpreting reality. If you are lying to someone about what a product can do, then you're a fraud, and you are a piss poor salesman.

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Change Your Life
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Thank you for your attentiveness,
the forward thrusters, engage on you busters,
I cut the mustard.