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Because there are many idiots are playing cut-throat price war. If you read Newspaper, you can always find kind of advertisement : RM 299 (USD 75)full package include domain name, hosting, design....... RM 100/year (USD 27)for web hosting.....
at the end , can they survive?
Probable yes if they are one-man-show and can close many deals and leverage from the bulk orders. But when times go on, can they handle?
People in Malaysia are funny, they want to see the salesperson, see the product before they want to buy. That's why e-commerce is still not popular in Malaysia. (among Malaysian buyers)
similarly, If you charge RM 299 (USD 75) to include web design, hosting and domain. Well, I think you need to travel to client site to collect the information at least once. Then, just imagine how many tolls in Malaysia and how terrible is the traffic jam, and calculate how many clients can be approached a day and how much is the cost per visit.
So, tell me back, how much is the profit if the selling price is RM 299 (USD 75)?
Of Course, from the consumer's point of view, they may love this price. But I always believe that a long term business is based on the mutual benefits and win-win situation. If kind of price jeopardize the seller, it will not survive longer.
At the end , who suffer? The consumers.
Another key element that the consumers always ignore is , after creating a web site , what's next? Many website owner just wait the visitors come and visit, then can get more enquiries from the visitors and eventually sell the products.
The fact is , No one VISIT!
If a website owner want to get more visitors ( traffic) to their website, just asking yourself : how do you find a company or product in Internet? The answer : Search Engine like Yahoo, Google or MSN.
similarly, listing the website in search engine is a MUST. If you don't, then prepare to spend more money on off-line promotion : TV, Radio, Newspaper. You can still get many visitors : - but , mostly are local visitors. (unless you promote to overseas media)
That's why I recently always advise the website owner to go for Search Engine Optimization (SEO). Only with SEO, your website will not turn to white elephant project.
Hopefully, the SEO service many not become the price war too in Malaysia. At least, to do SEO is not as simple as web design and web hosting.
[edited by: digitalghost at 7:05 pm (utc) on Sep. 13, 2005]
[edit reason] No URLs Please [/edit]
The main issue is not on diversify, it is the problem of kind of competitors that focus on short-term profit rather than long term profit. Due to guidelines of posting in this forum, i cannot give your the URL examples. you are welcomed to email me by click my "profile" on the left and i will discuss with you further.
You should also create your brand image side by side that will lead you to long term benefit and helpful to you to create your solid identity.
More detail I am sending you to your email address as per your request.