SitePoint.com

mPeror · Nov 7, 2009, 15:03

I'm not sure if I should put my hourly rate on my site or not (and most importantly, why).

I'm just afraid that people will be turned off by it (even though it's very reasonable). They're just not used to being charged by hour, even though I tend to be much cheaper than others in my field.

What are your thoughts on this? I've searched the forum and couldn't find anything related

Sagewing · Nov 7, 2009, 20:18

You know your business best. The answer depends on the message you want to send with your website, who you are trying to reach, etc.

lerxtjr · Nov 7, 2009, 22:51

No, don't post your hourly rate, ever. It's a no-win situation as I have tested both methods. You're either too cheap for some or too expensive for others when they see the numbers. Just get them to contact you, get them on the phone somehow, and after you've demonstrated your professionalism on the phone and showcased your experience, you can tell them your hourly rate.

But, then, the kicker is tell them that no one just hires you by the hour but instead they get "prepaid blocks of time at a discount."

Works every time for the sale AND you get paid up front. I've been doing it that way for 12 years. I'd say it's pretty proven.

mPeror · Nov 8, 2009, 02:35

Thanks a lot lerxtjr. Valuable advice. I appreciate it.

helen6391 · Nov 9, 2009, 01:31

Quote:

Originally Posted by mPeror

I'm not sure if I should put my hourly rate on my site or not (and most importantly, why).

I'm just afraid that people will be turned off by it (even though it's very reasonable). They're just not used to being charged by hour, even though I tend to be much cheaper than others in my field.

What are your thoughts on this? I've searched the forum and couldn't find anything related

I never give hourly rate nor charge by the hour, you just give the cost of the job and tell the client, I agree with lerxtjr it is effective.

hope this helps

helen

Denniz · Nov 9, 2009, 01:38

What business are you in? Instead of putting hourly rates, maybe you can offer different packages to your customers. Perhaps put a low price on the most basic package, then ask them to email you for quotation for higher packages.

amf45 · Nov 9, 2009, 04:48

If the price is a selling point in your favor, then list your price, but be aware that it limits your flexibility when it comes to pricing something. However, most people do not want to compete on price -- it becomes a race to the bottom -- so they don't list it and use their conversation with potential clients to determine the best price to sell their wares.

Sagewing · Nov 9, 2009, 13:41

'Flexibility in pricing' is only of value when you are bending your prices for clients. For struggling businesses that could be a good thing. For established businesses with lots of good clients, it's a time waster.

amf45 · Nov 9, 2009, 17:55

Quote:

Originally Posted by Sagewing

'Flexibility in pricing' is only of value when you are bending your prices for clients. For struggling businesses that could be a good thing. For established businesses with lots of good clients, it's a time waster.

Unless you're doing value-based pricing, which works better for good clients and established businesses.

I don't. But some think it's the best thing since sliced bread.

Denniz · Nov 9, 2009, 17:59

Quote:

Originally Posted by amf45

If the price is a selling point in your favor, then list your price, but be aware that it limits your flexibility when it comes to pricing something. However, most people do not want to compete on price -- it becomes a race to the bottom -- so they don't list it and use their conversation with potential clients to determine the best price to sell their wares.

That's a good point. Price war is really undesirable and is a lose-lose situation.

Sagewing · Nov 10, 2009, 07:56

Quote:

Originally Posted by amf45

Unless you're doing value-based pricing, which works better for good clients and established businesses.

I don't. But some think it's the best thing since sliced bread.

Oh no not this again!

amf45 · Nov 10, 2009, 08:12

Quote:

Originally Posted by Sagewing

Oh no not this again!

Yes, hopefully not. But one size rarely fits all either. Except for Snuggies, it seems.

wihee · Nov 10, 2009, 08:12

Show your clients the cost of your service/product after you have shown them the value of your service/product. And in most cases, don't price yourself on hourly rates(higher or lower, don't price yourself).

When you price yourself, you end up with two bad situations. 1- Not getting quality customers. 2-Limiting yourself to make good profits.

I have tested that for 10 years. And I know what I am saying.

~Mike

Sagewing · Nov 10, 2009, 11:27

Quote:

Originally Posted by amf45

Yes, hopefully not. But one size rarely fits all either. Except for Snuggies, it seems.

Sometimes one size fits that vast, vast majority. The 'value-based' debate has happened so many times on this forum, but I have yet to see a REAL example of it working (working = routinely used for a legit, profitable business)

Sagewing · Nov 10, 2009, 11:29

[quote=wihee;4427684]When you price yourself, you end up with two bad situations. 1- Not getting quality customers. 2-Limiting yourself to make good profits./QUOTE]

When you say not to 'price yourself' are you saying that you should only do per-project pricing?

wihee · Nov 10, 2009, 13:06

[quote=Sagewing;4427884]

Quote:

Originally Posted by wihee

When you price yourself, you end up with two bad situations. 1- Not getting quality customers. 2-Limiting yourself to make good profits./QUOTE]

When you say not to 'price yourself' are you saying that you should only do per-project pricing?

If the service/product is repetitive( I mean the same in size, quality, quantity, etc...) you can simply make packages.

And not to say " I do charge you $X by the hour." Just make your calculations private and just put the price to the service/product package. Not on yourself.

follow me now?

Sagewing · Nov 10, 2009, 14:27

Yea, and I would certainly agree with you. However, your perspective really relates to distinct services that are repeatable or can be productized. If you provide a routine service that can be priced abstractly, definitely an hourly rate is just a distraction to the client.

However, if you are pricing based on changing estimates and moving targets, hourly rates can be very effective.

Nov 7, 2009, 15:03	#1
mPeror SitePoint Wizard Join Date: Mar 2005 Location: Saudi Arabia Posts: 1,756	Shall I tell my clients what my hourly rate is? I'm not sure if I should put my hourly rate on my site or not (and most importantly, why). I'm just afraid that people will be turned off by it (even though it's very reasonable). They're just not used to being charged by hour, even though I tend to be much cheaper than others in my field. What are your thoughts on this? I've searched the forum and couldn't find anything related

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Nov 7, 2009, 20:18	#2
Sagewing Life is short. Be happy today! Join Date: Apr 2003 Location: Los Angeles, Bangkok, Manhattan, Louisiana Posts: 3,587	You know your business best. The answer depends on the message you want to send with your website, who you are trying to reach, etc.

Nov 7, 2009, 22:51	#3
lerxtjr You Bet Your Life...Really Join Date: Oct 2003 Location: Denver, CO Posts: 672	No, don't post your hourly rate, ever. It's a no-win situation as I have tested both methods. You're either too cheap for some or too expensive for others when they see the numbers. Just get them to contact you, get them on the phone somehow, and after you've demonstrated your professionalism on the phone and showcased your experience, you can tell them your hourly rate. But, then, the kicker is tell them that no one just hires you by the hour but instead they get "prepaid blocks of time at a discount." Works every time for the sale AND you get paid up front. I've been doing it that way for 12 years. I'd say it's pretty proven.

Nov 8, 2009, 02:35	#4
mPeror SitePoint Wizard Join Date: Mar 2005 Location: Saudi Arabia Posts: 1,756	Thanks a lot lerxtjr. Valuable advice. I appreciate it.

Nov 9, 2009, 01:38	#6
Denniz SitePoint Enthusiast Join Date: Sep 2008 Posts: 80	What business are you in? Instead of putting hourly rates, maybe you can offer different packages to your customers. Perhaps put a low price on the most basic package, then ask them to email you for quotation for higher packages.

Nov 9, 2009, 04:48	#7
amf45 Serial Entrepreneur Join Date: Jul 2007 Location: Atlanta, GA Posts: 494	If the price is a selling point in your favor, then list your price, but be aware that it limits your flexibility when it comes to pricing something. However, most people do not want to compete on price -- it becomes a race to the bottom -- so they don't list it and use their conversation with potential clients to determine the best price to sell their wares.

Nov 9, 2009, 13:41	#8
Sagewing Life is short. Be happy today! Join Date: Apr 2003 Location: Los Angeles, Bangkok, Manhattan, Louisiana Posts: 3,587	'Flexibility in pricing' is only of value when you are bending your prices for clients. For struggling businesses that could be a good thing. For established businesses with lots of good clients, it's a time waster.

Nov 10, 2009, 08:12	#13
wihee SitePoint Enthusiast Join Date: Nov 2008 Posts: 39	Show your clients the cost of your service/product after you have shown them the value of your service/product. And in most cases, don't price yourself on hourly rates(higher or lower, don't price yourself). When you price yourself, you end up with two bad situations. 1- Not getting quality customers. 2-Limiting yourself to make good profits. I have tested that for 10 years. And I know what I am saying. ~Mike

Nov 10, 2009, 11:29	#15
Sagewing Life is short. Be happy today! Join Date: Apr 2003 Location: Los Angeles, Bangkok, Manhattan, Louisiana Posts: 3,587	[quote=wihee;4427684]When you price yourself, you end up with two bad situations. 1- Not getting quality customers. 2-Limiting yourself to make good profits./QUOTE] When you say not to 'price yourself' are you saying that you should only do per-project pricing?

Nov 10, 2009, 14:27	#17
Sagewing Life is short. Be happy today! Join Date: Apr 2003 Location: Los Angeles, Bangkok, Manhattan, Louisiana Posts: 3,587	Yea, and I would certainly agree with you. However, your perspective really relates to distinct services that are repeatable or can be productized. If you provide a routine service that can be priced abstractly, definitely an hourly rate is just a distraction to the client. However, if you are pricing based on changing estimates and moving targets, hourly rates can be very effective.