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To list prices online or not?

Business and Management

  #1
EXP Creative
To list prices online or not?

Hello all. We are currently toying with the idea of developing an automated quote system in which our potential clients can input project details and get an instant approximate quote. Since every client's needs is unique and we only perform custom work, pricing can vary slightly depending on the project.

The question I have is:
As a start-up/small business owner looking for professional graphic design and marketing services...

1. I would be more inclined to request a formal quote after I had the opportunity to prepare an informal quote myself.

Or

2. I would not use the automated quote system, I would use the Request a Quote feature and wait for a response.
It is about 1/2 and 1/2 amongst our competitors. Some of our competitors list their prices, others do not. None have the instant quote feature that I know of . Of the ones that list their price - most have them listed in packages as a flat rate. We do not want to conform to package ordering and that is why we are thinking about the more detailed quote system.

If votes could be limited to only people owning a business or in a position to purchase services as ours, we would appreciate it as general votes could skew the results.

Your comments are welcome.
 
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  #2
RainMaker
EXP--I think your automated quote estimator is an excellent idea. Here is my reaction to "contact us for a quote:"
  1. We're expensive. If you gotta ask, you can't afford us OR
  2. We want to see how much we think you can afford before we decide how much to charge you OR
  3. We need to give you a hard sell with the price because otherwise you will run away OR
  4. YOU contact US because we are too busy/important to accomodate your pricing needs and sensitivities.
Personally, I am on a tight budget. I need a ballpark to feel comfortable enough to make contact. No one wants the embarrassment of gasping at the price. Likewise, why waste your valuable phone time on a prospect who is not shopping in your price range? Everyone is more comfortable with some basic pricing knowledge going into a meeting.

A self-serve quote is both SAFE for the consumer and PERSONALIZED. Beautiful idea IMHO.
 
  #3
EXP Creative
Thank you for your input RainMaker. You touched on the same points we discussed earlier. As a small business owner, I find myself vary rarely "requesting a quote". If it is a product, I will search eBay if needed in order to get an idea of what it is worth. If it is a service, I will search Google to find out what a companie's competitors charge. But I will not simply request a quote because that means somebody is going to call me and then try to sell me. I don't want that.

That's why we are discussing this. That and we want to standardize the web design/development industry as much as we can. If our competitors feel they must model us to stay competitive, I will be honored. If our clients appreciate it enough to use us, I will be :bg.

We are still looking for more posts and have the poll posted on a couple more forums, but we are already trying to figure out what features we want to incorporate. It has got to be the best online quote system for any graphic design firm while not using any plugins or limit participation - that's the fun part
 
  #4
KSA-Mktg
Hello All,

This is an interesting question. As a service provider, I go through the same thing. At this point, I've decided not to provide prices on the site. On the About page, which is written in terms of questions, here's what it says:

Why Aren't Fees Quoted on this Website?
There are a couple reasons. First, no two clients have the same objectives. Our work together is usually a combination of several types of services. Therefore, we’d rather talk to you about what you want to accomplish, determine an approach for meeting that goal, then provide a fee estimate based on the specific work that needs to be completed.

Second, we don’t like working on an hourly basis. In my opinion, if an advisor knows what they’re doing, they can prepare a fee estimate based on the definition of a particular project. And, stick to it. This approach eliminates surprises. If the scope of a project changes, or new requirements are identified, we’ll discuss the impact on fees before the work commences.

Certainly there are times when only an hourly fee is reasonable, but we don’t do the majority of our work that way.
----------------------------------------------------------

I don't mean to steal this thread, but I'd be interested to know what your reaction is to that type of an explanation. What I have found is that the first dollar figure a prospect sees gets burned into their brain for all time.

If the scope of the project changes after you have discussed their specific situation, it is very difficult to change the fee. Well, it's easy to reduce it, but if the scope is expanded, you're definitely starting off on the wrong foot.

What do you think?

Kathleen
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  #5
EXP Creative
Kathleen, you have made some good points. When you provide a service that can be tailored to fit individual clients needs, it's hard to quote a price. That's why we don't have prices listed now.

However, we do bill by the project. We do this for many reasons, but an example is coding a site to be compatible with IE and FF. Sometimes this is not as straight forward as one might believe and needs to be handled differently in different cases. This is not our client's fault as it is US who came up with the design. Billing by the project is, IMO, the best way to conduct business when you are working with clients with limited budgets. That way there are no surprises.

Our quoting system is going to have to consider the same things I consider when I am preparing a quote for a client over the phone. At the same time, it needs to be straight forward and intuitive enough to handle many different scenarios. It will take some time, but I believe the benefit will out-weight the costs due to the fact that we are probably losing so many opportunities because clients think that we are more expensive than we really are. We lose our fair portion of clients because our prices are higher than expected, but we are still priced well below market value. With the experience we possess in-house, we shouldn't be. That was a decision we made when decided who our target audience would be though.

So to answer your question, I understand that response. That's what I'm doing now, however, I feel I could be losing business because of it. Do you see a large portion of your visitors browsing your site, staying long enough to read the copy and look at the pictures, go to the request a quote or pricing page and then leave without submitting a quote? I am. When we implement the self-serve (thanks for the wording RainMaker) quoting system, we will make the participant aware that the quote is an approximate quote and that the quote needs to be reviewed by an EXP Creative representative before the client will receive a formal, written proposal for services.

At this stage in the game, I believe we will implement the quoting system no matter how the poll turns out. Worse case scenario, it will be a temporary and expensive Ad A/B testing procedure but I don't think we can further the respect of the design and marketing industry without trying.

Input is still appreciated.
 
  #6
Agent Smith
For a small project I would like the idea. For larger projects I'd be skeptical. :wi
 
  #7
EXP Creative
Quote:
Originally Posted by Agent Smith
For a small project I would like the idea. For larger projects I'd be skeptical. :wi
What would make you skeptical? Keep in mind potential clients will still have the option to request a quote. The self-serve quote would only be an option to people who might not normally request a quote.
 
  #8
Agent Smith
Quote:
Originally Posted by EXP Creative
What would make you skeptical? Keep in mind potential clients will still have the option to request a quote. The self-serve quote would only be an option to people who might not normally request a quote.
On a larger project, without someone taking the time to sit down with to review my unique situation I would be skeptical about an automated quote.
 
  #9
RainMaker
Quote:
Originally Posted by Agent Smith
On a larger project, without someone taking the time to sit down with to review my unique situation I would be skeptical about an automated quote.
I think this could be addressed with clear copy.
 
  #10
Agent Smith
Quote:
Originally Posted by RainMaker
I think this could be addressed with clear copy.
That wouldn't do it for me but I'm not everyone else. :wi
 
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