Ethical Issue in website pricing

Charge what they expect?

[shanz]

I met a client over a pint in town. He mentioned to me some quotes he was getting for a site. He was using some big town salesmen who give him shall we say "a slightly padded quote".

Now my problem is even if I slash 25% from his quote I would still be overcharging him if I was honest with myself. He mentioned that if I could beat the quotes by say 10% <nudge></nudge> he would have a quite word and get me the job.

So my question is, should we just play the big business game? Or do onto another as you would have done onto thyself? (something like that)

Shanz

[SmallTime]

maybe you undervalue yourself :)

[shanz]

That is actually a good point.

I would not be shy to quote big numbers for my services in the right circumstance. However this job is in the league of major suckers. Sort of like a company I worked for that was paying £120 per domain name/per annum.

Expertise should always be rewarded but at what point does charging premium rates for web services damage the industry?

[lawman]

FWIW, GO HERE [webmasterworld.com] for my post on fees.

If you have the reputation for being one of the best, people expect to pay higher fees.

lawman

[TallTroll]

Beat the quote by, say, 15%. Then, when the project overruns (they always seem to do that), make a point of standing by your original quote.

You are then the good guy on 2 counts,

1) Attractive initial quote
2) Quality customer service

If you still feel like you are gouging them, let them have a couple of minor updates for free, or something, again reinforcing client perception of your excellent customer service, without killing your margins.

And to echo SmallTime, consider raising your rates generally. If you are doing pro quality work, you deserve pro quality remuneration. That is how a market economy works

[Damian]

Good advice above I think..my 2 cnts..

Don't charge to the point of feeling you overcharge. Feeling good about and being honest with yourself is priceless.

Don't be too sensitive though. It's okay to make lots of money if you're good :)
For me the border of overcharging is the point where I feel the client would still make a profit hiring me.

>do onto another as you would have done onto thyself
YES !

[gsx]

Reduce the quote by the amount he stated (10%) and do the job :)

You have an advantage if you overcharge - if extra work needs doing, or a job takes longer, or the client says "how much to do ... as well" (a small job), you can do it for free (you've already been paid for it of course). The client doesn't realise he has paid for it and will give you good recommendations to other people or continue to use your services at an inflated price.

I once worked in the stationery trade. We sold custom made rubber stamps. We lost money whenever we made them and they were wrong. Simple, I got the staff to DOUBLE the cost price, then add a percentage on top of that. Customers paid. There was no upset when a stamp was made incorrectly because we still made profit. Those that went smoothly - we made a lot more money. Business increased because people would say "you know ------ stationers? They made up a stamp wrong for us and when we queried it they made up a new one and we had it within two days. There was no blame put on us."

Price isn't everything - but - if you charge high, give a high service to reflect that.

[shanz]

Talltroll-

Your paraphrased advice is now winging its way in the form of a quote to the client in question.

The client will save money and I will make a bucketload! I do have some lingering doubts though. I'm sure most respectable webmasters out there would smile wryly to themselves when they collected a fee like this for the work involved.

Cheers Shanz

P.S. lawman - your article is now in my "print out in case my comuter explodes drawer"

[lawman]

Shanz:

I consider it an honor to be in your drawers. ;)

lawman

[txbakers]

lawman: I hope you meant his desk drawer and not his....drawers.....