Pricing is marketing

2 scenarios base on true stories.

A website designer puts himself at the far left of pricing axis, charging $800 for a website. He needs to get 5 clients every month to sustain his one-man shop, he spends on ads and gets a lot of leads.

He has trouble keeping track on all of them, working on follow ups is a challenge too and conversion isn’t really encouraging.

5 new projects a month isn’t an easy task, and website development projects drags. At anytime he needs to juggle between 10-15 projects, all the requests and workload affects his delivery.

When stress and burnouts kick in, he under delivers and eventually decided to quit.

On the other hand, another designer charges premium at $8,000 for a website development project. The amount he spends on advertising is almost the same as the first designer, thou he gets a lot lesser leads, they are usually of higher quality.

He gets to meet all of them, he worked deeper on the proposals, he leaves good impressions on the prospects despite the conversion.

With an average of 1 new client per month, he maintains a small team and worked on quality of delivery. With good portfolio and word of mouth, he managed to grow his company steadily.

I’ll just leave them here for your considerations.