In my last post titled “Tips for Better Business online during financial crisis” I was talking about discount day. However, after publishing that story I started thinking about the pricing strategy.
For example, there are thousands of web page designers in the web. They design a website according to the need of the clients or just put up a design for sale in their own website. It is not necessary that all of them have great knowledge about pricing strategy but they fix up a price for the product. Do you see the same thing in the market when you go to buy grocery or an electronic product!
Did you ever ask them why they are charging $250 for a WordPress template! What is the actual development cost, recurring cost etc!
And more importantly, why should someone pay $250 for that theme when he or she can get another (no comments on aesthetics) for $50 or even get a free template!
I don’t care how much you are actually charging to design a website. I am just trying to understand what your pricing strategy is! Why you are charging what you are charging!
This is important for you to understand as this would also help you to identify your USP. And your USP have the potential to get you more clients and better pricing than your competitors.
It is not just about web designers. This is also about everyone who is producing or developing a product like content or premium plug-in or SEO/SEM services (just trying to stay within our own periphery).
There are lots of competitions but there is no industry standard pricing perimeter. And thus you would see huge differences in pricing.
When you are selling products developed by other companies, you have a base price where you calculate your profit. How do you calculate your profit on the creative works like website design or content writing or SEM!
What do you do? What is your pricing strategy? Let’s share and learn.
2 Comments
Add your commentIt’s interesting to me, a lot of clients don’t ask why something costs as much as it does. If they think it’s a good price (and if it fits into their budget) they go with it without asking questions. That’s no good!
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Surprisingly, customers do pay even if they are quite broke.
They are either too lazy to get certain templates or scripts done thus they are willing to pay and get them instantly.
The rest are simply eager to buy everything that is coming out in the market.
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