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View Full Version : What and When to Charge?
kjedwards 12-10-2002, 11:08 AM Hi
After doing some research around my local area I think there is an opportunity to offer a complete package to small businesses ie domain name, hosting, basic web site design, etc
I plan to produce a promotional leaflet and sending it out to a few hunderd local businesses and see what happens - shouldn't cost too much to do that.
I am thinking about offering registration of a .co.uk or .com together with 12 months hosting/support, design a 3 page web site - main page, info page and contact page and throw in basic submission to local directories and search engines, etc. To get the info for the web site I will include say 1 hours consultancy with the client.
I am thinking of pricing this as a complete package at about £195 ($250) Followed by £5 ($7) hosting per month after the first year.
The questions I have -
1. Does the package sound ok for the price
2. When to charge the fee - on sign up or after the site goes live or a combination of the two.
After looking around for some time, I cannot find anything similar aimed at small businesses - there are plenty aimed at bigger businesses so pricing is difficult.
I would be grateful for any feedback
thanks
Kevin
Rotifer 12-10-2002, 08:38 PM It seems like a nice price to me, assuming you offer a solid product unique to the customer. I would ask for a £50 or £60 non-refundable deposit with the remainder due upon completion of the project.
kjedwards 12-11-2002, 04:45 AM Hi Rotifer
Thanks for that.
The web site will be designed for each client - using their own logo, description of business, details of the owners, experience, portfolio, etc, and won't just be a template design.
There are several companies offering webs site design but they rarely mention price - quoting when they have a specification, which I feel for most small businesses will be out of their pocket and over the top.
Most small businesses will use a web site for promotion/advertising so a small, attractive simple site will be more than enough.
The fixed price will include design of a 3 page web site - enough for most needs but there will of course be an option to add additional pages for additional cost - but again I feel that most businesses won't need this.
I am thinking of targeting small businesses ie plumbers, electricians, small shops, etc
Any further advice would be gratefully received
Thanks
Kevin
skelley1 12-11-2002, 05:00 AM the biggest thing to keep in mind in this business model is that you need to calculate and keep track of your time closely. These type of clients usually don't have any idea what they want, so you'll spend some time learning their businesses each time, and explaining things a lot. That's before you even get to anything.
Certain types of small businesses lend themselves to maintenance on their sites due to daily/weekly specials, etc. Make it abundantly clear what is covered in your costs and what is extra. Coming up with a well-designed format for gaining this information will cut down on your time required. BTW, this is also one of the best ways to profits as an extra $10/mo looks a lot better than charging $120 for the year.
I would suggest getting some kind of deposit before starting design work on the site, to cover your costs in case they back out or don't pay. Then start charging for hosting when the site goes 'live.'
Some small businesses will require logos, slogans, etc. Make sure you provide for that.
One of the best marketing ideas I came across is to get your business up and ready, and then host some kind of cookout or casual function for small business owners and let them know that you are starting a small business yourself and would value their input. When they arrive, have a survey for them to fill out that will help you determine your price points, what they need, where they go online, why they haven't gotten a site, etc. Do NOT try to sell anyone at this function. Just use it for information.
Some of these people will get back with you either for their business or with referrals. Especially if you get close to them and let them be your 'mentor' about business ideas.
kjedwards 12-11-2002, 06:37 AM Hi
Thanks for that.
Yes I am aware that most of these businesses will probably have little idea of their web needs - which is why I think the 'total package' approach is a good idea - most people are aware of the internet and probably think it is a good way to advertise but have no idea of what is involved or the costs involved.
There is actually nothing worse than the 'unknown' ie I would like this but I don't know how much it will cost.
I feel if you say you get 'everything' for a set fee then that will be attractive.
The sticking point will of course be to pursuade them that the fee will be worth it to their business but to my mind £195 for 24 hour advertising, 7 days a week is worth a try.
Your idea of having a business launch and inviting comments, etc is a good one. I am not sure why businesses should respond to this though - I wouldn't!
I think the flier targeted to local businesses is a good starting point and maybe supplimented by local adverts.
Yes, you are right it is important to watch time, which is why I plan to create a few 'example sites' showing typical 3 page site designs. I think a 3 page web site will be adequate for most needs.
Yes I will have in mind a typical layout with information points and maybe produce a questionnaire for clients to complete before discussing their needs - this will allow them to say what they want and give a structure to drawing up a spec.
The important selling point is to get them on the web quickly and effectively for their business. Yes they may need logo design but in the main I suggest using what they use now on letterheads, etc. If they do need a logo designing from scratch then of course that should be extra but I am a firm believer that goining over the top is not necessary - if someone wants a plumber, say, then they are looking for someone who is experienced, does a good job and doesn't charge too much - the fact they have an expensive flash-automated logo on their web site isn't going to do a lot.
The approach I want to take is basically - I will get your business on the web, in a simple, effective and professional way for a set fee.
Profit wise, I calculate my costs as producing/distributing fliers, advertising costs, domain name registration, hosting costs, travel costs in visiting clients.
Fliers/advertising - I cannot estimate per client because I won't know the take up rate until I start, domain registration is not too much, hosting well I have reseller space already paid for, travel most businesses will be local so that should not be too high.
That just leaves time involved in running the business, visiting clients, designing, etc.
I estimate that if each client costs me £75 and I charge £195 that's a potential profit of £120 a client PLUS I hope after 12 months most will stay with me for hosting so £5 a month per client in the second year and subsequent years.
I could add to that by charging a modest fee, for site maintenance.
My hope is that the business will attract enough clients to provide a profit in the first year, and have a high retention rate so hosting income provide a good revenue.
Thanks again
Yours
Kevin
captainccs 12-11-2002, 06:41 AM Kevin:
I like the idea so I put some numbers together
Cost Units Total
Hosting 7 12 84
Domain 12 1 12
Design 35 3 105
Search engine 14 1 14
Consulting 35 1 35
Total 250
I'm thinking of offering "webmastering" as a continuing service. I wonder how much you can charged for that???? At $35 an hour, (the rate I used above) for one hour a week of your time you would have to charge $150 a month. Seems a bit lob sided to charge $7 for the hosting and $150 to baby sit the site.
Any ideas?
kjedwards 12-11-2002, 07:05 AM Hi
I cannot see many small business paying $150 a month to baby sit a 3 page web site.
Yours
Kevin
skelley1 12-11-2002, 07:07 AM http://az-web.com/html/hosting/index.html
Lirath 12-11-2002, 07:16 AM That's IF the businesses needed 4 hours a month change..
If your a good site designer (which I am of course) you make the changing parts of the website... news, prices, events, whatever.. all database driven.. give them a hidden form to update it... that way, they don't have to pay you $35/hr serveral times a month to update things... and of course, then they like you
skelley1 12-11-2002, 07:18 AM or if you're a bad designer and a good businessman (like I am) you sell them on the idea that the money they invest in their new 24X7 advertising would be worth it, and give them the option to learn Dreamweaver or pay my guys to do it for them so they can focus on their core competencies :D
kjedwards 12-11-2002, 07:40 AM Hi
The database driven site idea for some things like contact info, services, prices, etc is a good idea - if you can incorporate that into having sites built for different clients that don't all look the same
Yours
Kevin
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