Pricing Strategies: Package Deals or Selling Individual Services? Tips to make your profits soar.

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Common pricing structures rob web designers.

 

Members of the Web Design industry commonly price their services based on the number of pages they create for a client.  Typically, a web designer will create package deals to offer their clients enhanced service at a discounted rate.  Creating added value for your customers is always a strong business practice, yet developers often come out on the losing end of the transaction, forfeiting profit for a job well done.

 

An example of this web design pricing structure could start with a value package including a 5-page design for a set fee; the next value package might include a 10-page design for a slightly higher fee. At first glance, this “value pricing” approach is reasonable, but it is shortsighted and can potentially eat into profits.  Here’s why:

 

No two web designs are created equal. Depending on project requirements, the cost and complexity of creating each page differs significantly. For instance, creating graphic images and SEO copy can’t be compared to coding a Contact Us page complete with text fields and comments form – that’s like comparing apples to oranges - so why should they be priced the same? The pitfall of this pricing structure is that it doesn’t take into consideration a client’s specific needs – it just fulfils general requirements.  Setting prices by page number can lead to underestimating the time and complexity of a project.

 

Success should be measured by profit.

 

Offering web design packages based on a number of pages is not only an imprecise way of placing value on your services, but also is a surefire way of killing your profit.

 

Selling web designs as quantifiable units positions you as a web design supermarket and not as a professional web developer. Assigning a fixed price to a five-page design throws your offer into the ring to be compared to other packages offering five pages for a fixed fee. The price then becomes the focus and you and your potential customers have lost sight of your most valuable selling point: your professional knowledge and expertise.

 

Fixed prices can always be undercut by your competition.  Playing that game will drive your valuations into a tailspin, and service standards will decline.  Your expertise and experience bring value to each project, and a pre-packaged pricing structure effectively places your services on the same level as all equal-page offerings, regardless of the quality. 

 

Stop counting pages.

 

When the Internet first became the go-to tool for information and business, web pages were mainly static HTML documents with text and images. Today it is nearly impossible to measure the amount of content and processes interconnected in a site’s backend.  Podcasts and audio, streaming video, interactive AJAX elements, third party service queries through APIs, databases, content management systems (CMS), integrated social media and so on. A web page is no longer a stable unit of measurement.

 

Calculate profitable web design and service fees.

 

Eliminate the number of pages as the determining factor for valuing your services.  Your other choices include billing your client by the hour, or placing a value on each service you offer, and invoicing your client with detailing the services performed.  It is difficult to communicate what ten hours of design and develop involves.  Savvy clients know that for various activities, ten hours may be surprisingly little time or may be excessive, but billing by the hour means you must continually justify your time management skills and expertise or weaknesses.  For those who opt to bill by the service performed, a detailed description of what each service entails can go a long way for demonstrating value to the customer. 

 

Regardless of how you choose to approach pricing, the most important piece of advice offered here is to describe in detail the activities you will perform for your client.  By highlighting features, you can address customer needs and wants and arrive at a project price that way. Tailoring your web design projects and services specifically to each client’s individual needs allows you to demonstrate how your knowledge and experience surpass that of the competition.  This approach is more efficient and allows you to offer your client a more competitive price.  It also enables you to spend less time performing non-essential tasks, thus turning a greater profit.   

 

Every project has its price.  Do not undervalue your services.

 

Calculating the true costs of a project cannot be determined by an arbitrary number of pages. Asses your clients’ individual project needs and take into account your skill sets and the amount of time it will take to complete each task.  Web designing and developing has its price - do not undervalue your time and expertise.

 

Ultimately, how you approach pricing your packages, projects or services is your choice to make.  But it is also your duty as a businessperson to know your profit margins and whether your current pricing falls on the profit or loss side of the line.  

 

Good luck!

Web Design Pricing Strategies: Package Deals or Selling Individual Services? Tips to make your profits soar.
 
 
Common pricing structures rob web designers.
 
Members of the Web Design industry commonly price their services based on the number of pages they create for a client.  Typically, a web designer will create package deals to offer their clients enhanced service at a discounted rate.  Creating added value for your customers is always a strong business practice, yet developers often come out on the losing end of the transaction, forfeiting profit for a job well done.
 
An example of this web design pricing structure could start with a value package including a 5-page design for a set fee; the next value package might include a 10-page design for a slightly higher fee. At first glance, this “value pricing” approach is reasonable, but it is shortsighted and can potentially eat into profits.  Here’s why:
 
No two web designs are created equal. Depending on project requirements, the cost and complexity of creating each page differs significantly. For instance, creating graphic images and SEO copy can’t be compared to coding a Contact Us page complete with text fields and comments form – that’s like comparing apples to oranges - so why should they be priced the same? The pitfall of this pricing structure is that it doesn’t take into consideration a client’s specific needs – it just fulfils general requirements.  Setting prices by page number can lead to underestimating the time and complexity of a project.
 
Success should be measured by profit.
 
Offering web design packages based on a number of pages is not only an imprecise way of placing value on your services, but also is a surefire way of killing your profit.
 
Selling web designs as quantifiable units positions you as a web design supermarket and not as a professional web developer. Assigning a fixed price to a five-page design throws your offer into the ring to be compared to other packages offering five pages for a fixed fee. The price then becomes the focus and you and your potential customers have lost sight of your most valuable selling point: your professional knowledge and expertise.
 
Fixed prices can always be undercut by your competition.  Playing that game will drive your valuations into a tailspin, and service standards will decline.  Your expertise and experience bring value to each project, and a pre-packaged pricing structure effectively places your services on the same level as all equal-page offerings, regardless of the quality.
 
Stop counting pages.
 
When the Internet first became the go-to tool for information and business, web pages were mainly static HTML documents with text and images. Today it is nearly impossible to measure the amount of content and processes interconnected in a site’s backend.  Podcasts and audio, streaming video, interactive AJAX elements, third party service queries through APIs, databases, content management systems (CMS), integrated social media and so on. A web page is no longer a stable unit of measurement.
 
Calculate profitable web design and service fees.
 
Eliminate the number of pages as the determining factor for valuing your services.  Your other choices include billing your client by the hour, or placing a value on each service you offer, and invoicing your client with detailing the services performed.  It is difficult to communicate what ten hours of design and develop involves.  Savvy clients know that for various activities, ten hours may be surprisingly little time or may be excessive, but billing by the hour means you must continually justify your time management skills and expertise or weaknesses.  For those who opt to bill by the service performed, a detailed description of what each service entails can go a long way for demonstrating value to the customer. 

Regardless of how you choose to approach pricing, the most important piece of advice offered here is to describe in detail the activities you will perform for your client.  By highlighting features, you can address customer needs and wants and arrive at a project price that way. Tailoring your web design projects and services specifically to each client’s individual needs allows you to demonstrate how your knowledge and experience surpass that of the competition.  This approach is more efficient and allows you to offer your client a more competitive price.  It also enables you to spend less time performing non-essential tasks, thus turning a greater profit. 
 
 
Every project has its price.  Do not undervalue your services.
 
Calculating the true costs of a project cannot be determined by an arbitrary number of pages. Asses your clients’ individual project needs and take into account your skill sets and the amount of time it will take to complete each task.  Web designing and developing has its price - do not undervalue your time and expertise.
 
Ultimately, how you approach pricing your packages, projects or services is your choice to make.  But it is also your duty as a businessperson to know your profit margins and whether your current pricing falls on the profit or loss side of the line.   

Good luck!
 



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