Comments on: How to figure out what price to charge via split testing http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/ News, opinion, and fresh thinking for web developers and designers. The official podcast of sitepoint.com. Mon, 23 Nov 2009 05:23:27 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: mkrz http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6208 mkrz Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6208 <p>I think many of us sell services rather than products. Now, I have already understood that it's important to sell based on value. But often I just don't know how to determine this value - how do you quantify the value of, say, a business website that doesn't sell anything and that does not directly save costs? This is a question that has really bothering me for a while, and so far I haven't found an answer. <br /> Michael K.</p> I think many of us sell services rather than products. Now, I have already understood that it’s important to sell based on value. But often I just don’t know how to determine this value – how do you quantify the value of, say, a business website that doesn’t sell anything and that does not directly save costs? This is a question that has really bothering me for a while, and so far I haven’t found an answer.
Michael K.

]]> By: ecaptus http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6209 ecaptus Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6209 <p>Mike, That's a tough question. I'm sure part of the problem you are having is you are too worried about what other companies charge. Try to come up with a pricing structure for different levels of service. If you are too high, you'll see it in less project wins. If you are too low, you may get more wins, but you'll find you profit margin to be much less than ideal.</p> <p>Thanks!<br /> Steve</p> Mike, That’s a tough question. I’m sure part of the problem you are having is you are too worried about what other companies charge. Try to come up with a pricing structure for different levels of service. If you are too high, you’ll see it in less project wins. If you are too low, you may get more wins, but you’ll find you profit margin to be much less than ideal.

Thanks!
Steve

]]> By: M36Teen http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6210 M36Teen Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6210 <p>So, would you say it is better to start out asking for a high price, and then come down if you need too?</p> So, would you say it is better to start out asking for a high price, and then come down if you need too?

]]> By: Dano http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6211 Dano Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6211 <p>Mike: "a business website that doesn't sell anything and that does not directly save costs"</p> <p>You are always selling something. There are methods to quantify the efficiency, based on the results you need to achieve: more sells, more visits / time per visitor, corporate image perception, positioning, brand recordation, empowerment, anything. </p> <p>There is a purpose behind every communicational action that you take. </p> <p>If you plan the site according this principle, you can prove that you are in the right way, in any step of the plan you are. </p> <p>For example: you can compare the results against the last year results, or against an average number on the industry. You are always talking about numbers, thats the language of business. This have to be accorded before the site construction, in the planning step.<br /> </p> Mike: “a business website that doesn’t sell anything and that does not directly save costs”

You are always selling something. There are methods to quantify the efficiency, based on the results you need to achieve: more sells, more visits / time per visitor, corporate image perception, positioning, brand recordation, empowerment, anything.

There is a purpose behind every communicational action that you take.

If you plan the site according this principle, you can prove that you are in the right way, in any step of the plan you are.

For example: you can compare the results against the last year results, or against an average number on the industry. You are always talking about numbers, thats the language of business. This have to be accorded before the site construction, in the planning step.

]]> By: sspivey http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6212 sspivey Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6212 <p>Regarding the posying form mission36teen.com, I saw in action in a previous job that a significant part of the perceived value is just that, percieved. Part of that price. If I charge $50.hour for consulting while all my competitors charge $125, prospects WILL wonder why and most will likely conclude I don't have the skill or business acumen my competitors have. ==> It's easier to start high becuase it's easier to come down on price than increase price.</p> Regarding the posying form mission36teen.com, I saw in action in a previous job that a significant part of the perceived value is just that, percieved. Part of that price. If I charge $50.hour for consulting while all my competitors charge $125, prospects WILL wonder why and most will likely conclude I don’t have the skill or business acumen my competitors have. ==> It’s easier to start high becuase it’s easier to come down on price than increase price.

]]> By: ecaptus http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6213 ecaptus Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6213 <p>I think it is easier to start high. Now, I have worked on projects that a former employer won because we way underbid, but we ended losing money in the end. </p> <p>If you start too high, chances are you won't win the project. If this happens, follow up with the prospective client for feedback. You'll get a better feel for the next proposal. </p> I think it is easier to start high. Now, I have worked on projects that a former employer won because we way underbid, but we ended losing money in the end.

If you start too high, chances are you won’t win the project. If this happens, follow up with the prospective client for feedback. You’ll get a better feel for the next proposal.

]]> By: M36Teen http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6214 M36Teen Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6214 <p>Cool, thanks guys.</p> Cool, thanks guys.

]]> By: hey chief http://www.sitepoint.com/blogs/2004/10/24/how-to-figure-out-what-price-to-charge-via-split-testing/comment-page-1/#comment-6215 hey chief Tue, 30 Nov 1999 00:00:00 +0000 1415517691#comment-6215 <p>on line testing of price-using multiple sites</p> <p>gentlemen: i have been told that you can have a site that has an A - B split built into the code.? actually the split could be 10 different offers! allowing very fast testing of marketing models. who knows the answer to this question? can it be done? if yes, what does it take to do it?</p> <p>peace<br /> chief</p> on line testing of price-using multiple sites

gentlemen: i have been told that you can have a site that has an A – B split built into the code.? actually the split could be 10 different offers! allowing very fast testing of marketing models. who knows the answer to this question? can it be done? if yes, what does it take to do it?

peace
chief

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