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  1. #1
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    Do low prices hurt sales

    If I price my services low, will it hurt sales?

    I am trying to geneate my first client and to this end I find sites that could be redesigned, create a new design and offering it to the business owner at a low price ($99).

    Last night I sent two 'offers' to and had one call back. I sent that person six screenshots of the site. It was a pretty good site in terms of design and custom PHP/Wordpress programming.

    I now think that my price may have turned the person off. I know that often I base my buying descision on price when I have little information. And often I pick the higher price assuming thatis of better quality.

  2. #2
    Life is short. Be happy today! silver trophybronze trophy Sagewing's Avatar
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    The answer is somewhere in the middle, as usual.

    If you price too low, you will absolutely scare off good clients. I have no interest in a $99 designer because I want good quality and experience, and an experienced designer wouldn't charge such a low rate.

    On the flip side, if you are just building up your clientele offering low prices is a great way to get things going. Just be a little less than the market rates and you'll be ok - no reason to discount further than that.

    The trick is to know your market. If you have an idea of what your service would cost on the open market, you can undercut the competition a little bit without making yourself look like a flea market.

    Another thing that helps is to offer discounts rather than cut rates. If you want to give out deals, thing about giving new clients 50% off $200 instead of $99 - or something like that! Good luck!
    The fewer our wants, the nearer we resemble the gods. Socrates

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  3. #3
    SitePoint Zealot naynay99's Avatar
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    what are you doing exactly for that $99? let me see your work(seriously) I'll hire you. I am always farming out work. esp to people who don't know their worth and work for cheap. lol

  4. #4
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    Quote Originally Posted by naynay99 View Post
    what are you doing exactly for that $99?

    Photoshop design, handcode(xhtml 1 strict, 960gs) and then implement in Wordpress.

  5. #5
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    Check out what your competitors are charging and maybe look at providing some value added service included in your charges.

  6. #6
    SitePoint Wizard
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    Quote Originally Posted by Sagewing View Post
    If you price too low, you will absolutely scare off good clients.
    Absolutely true. There are perceptions in people's minds about what a professional will charge. Professionals don't come cheap and everyone knows it. Rightly or wrongly, if you are too cheap you will not convey professionalism. Funny how that works, isn't it?

    Not knowing anything about a lawyer other than their prices, which one would you assume (rightly or wrongly) is more experienced and of higher quality, one that charges $35 an hour or one that charges $350 an hour? The natural assumption is that if someone is charging $350 an hour they must be good. But that just might not be true.


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