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Pricing Issues


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  #1  
April 27th, 2009, 01:32 PM
Kilikina's Avatar Mega Super Mommy
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Location: Calgary, Alberta, Canada
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Hello ladies. I have a few questions for you. I have come to a bit of a road block in regards to getting new clients. There are a few local homebased companies that do what I do (invitations, announcements and such). there always will be. When I set up my pricing I sort of went for the middle to high ground - but I definately do not charge the hightest in this city. I gathered info from several companies that were in this city and also in other areas of the province and around canada to get a good feel of what was generally charged for that sort of design. I charge $40 for a custom made design w/o printing. I get the cards printed somewhere else. But I give my clients the option to pay for just the design and print themselves or pay for both printing and the design and I just get them printed at the print shop I use.

Now I post my adds alot on Kijiji - had alot of business that way. It's cheap and well worth it in my mind. Lately though I have had lot of people either tell me that I charge too much, and yet there are other companies doing well that charge more then me. There are a few in the city that charge as little as $9 for a design. In my mind that is a bit cheap, but when people charge that little, it starts to effect the way business is for others. Granted that is a given in business, but what they charge is less than half of what I do - it's 1/4 actually and I am not really sure what to do. The most I have seen in the city is $65 per design w/o printing and like I said the cheapest was $9. I did alot of research before I set my prices up.

So what do you think I should do or what would you do? I was thinking of possibly dropping my prices abit, but to what amount?? I don't want to go as low as $9. I am a firm beliver that the price reflects quality so I don't want to be too "cheap" and think I do "cheap" work. But I feel stuck. any advise would be greatly appreciated. Thanks ladies.
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  #2  
April 27th, 2009, 03:12 PM
LadyViola's Avatar Mega-Super-Platinum Lady
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I've had people tell me the same thing. You will always get people who think you are over-charging but in the end you have to decide what you think your time and skills are worth. Its never a bad idea to re-think your pricing and decide whether your prices need to be modified to remain competitive, but don't ever ever ever lower your prices simply because a client thinks its too high. If they want a quality design, they will pay the price. I once had a customer email me and ask for a quote for my invitations and apparently they did not like my pricing because they asked me, "Is that the best you can do?" and I said "yes" and I kindly explained to them the process and the work that goes into my designs. And he said "well there are others that are selling similar items for lower prices" and my response was basically "if you found it cheaper elsewhere, why not purchase it there?" Of course I am just paraphrasing but you get the idea. He obviously wanted a higher quality than what he had seen elsewhere, but he didnt want to pay the higher price.The bottom line is you usually get what you pay for. Once you pick your pricing, you need to stay firm, because if the customer feels like they can talk you down from your prices, they may think they can get away without paying at all. As a sidenote, alot of people who inquire about web designs have not really done their homework or shopped around for price comparisons. They don't know what your design is worth, they just know how much they want to spend. So if you quote them a price thats more than what they want to spend, they automatically think its too high. I always encourage people to look around at some other pricing so that they get an idea of what to expect as far as pricing.

I'm not saying you should not lower your prices, because there's nothing wrong with lowering your prices temporarily to adjust to the market's demand. Just don't let customers try to get over on you.
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Last edited by LadyViola; April 27th, 2009 at 03:15 PM.
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  #3  
April 27th, 2009, 05:17 PM
Kilikina's Avatar Mega Super Mommy
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Thank you LadyViola that definately helps.

I don't think I will change my fees. I just spoke with another lady who charges the same as me and she said that you need to price your designs accordingly because you have to be compensated for your work and time. So I feel $40 is not alot considering the amount of time I do put in it and if there are changes made that also takes time. So thank you for your advise. I was going to change my fees only because someone had thought they were too high. I got an email on Friday afternoon and never got a chance to email this lady back till Friday night because I was helping my dad move. Anyway I told her what it would cost to print them herself and she never did email me back. I know she read it because I sent a read receipt so i think that some people are just too cheap to pay for good work and those are not the clients I want.

Thanks again.
__________________

"Splish splash I was taking a bath!"

I design custom photo cards and websites. For more
information please check my 2 websites:
http://www.designsbykristina.ca
http://www.q1media.net
or send me an email: kduverna@q1business.net




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  #4  
April 28th, 2009, 10:37 AM
~InHisHands~'s Avatar Platinum Supermommy
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I agree with LadyViola but since you asked, I'm going to be honest... when I first saw the price I thought it was a bit out of my price range as well. Not b/c your work isn't absolutely BEAUTIFUL & isn't worth the price but b/c of my financial situation. I just can't spend that much money on invitations or anouncements or something, especially with the economy the way it is. Just something to think about...
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  #5  
April 28th, 2009, 10:43 AM
Kilikina's Avatar Mega Super Mommy
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InHisHands:

I do agree with you actaully so I guess I am still stuck abit. Maybe if I ask you guys what you would pay for the design and go from there. Thank you though InHisHands - I value your opinion and really in my financial situation I couldn't really afford to pay for that either. The lady that I spoke with that lives in the same city as me has not slowed down and she actually charges $5 more. I guess you won't be able to hit all the markets. But I could offer some sort of discount maybe or I don't know I will think of something. Thank you though.
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"Splish splash I was taking a bath!"

I design custom photo cards and websites. For more
information please check my 2 websites:
http://www.designsbykristina.ca
http://www.q1media.net
or send me an email: kduverna@q1business.net




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  #6  
April 28th, 2009, 11:43 AM
~InHisHands~'s Avatar Platinum Supermommy
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I didn't mean for you to become stuck again! If another lady in the same area that charges more than you is doing well it may be more of an issue of advertising & getting your name out there... IDK! Hope you find what works best for you!
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  #7  
April 28th, 2009, 11:52 AM
Kilikina's Avatar Mega Super Mommy
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oh no worries - not really stuck but just sort of wondering what is the best thing to do. Your advise was great so no worries.
__________________

"Splish splash I was taking a bath!"

I design custom photo cards and websites. For more
information please check my 2 websites:
http://www.designsbykristina.ca
http://www.q1media.net
or send me an email: kduverna@q1business.net




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  #8  
May 3rd, 2009, 11:35 PM
CeiCei's Avatar Platinum Supermommy
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My opinion is to keep your prices as is, but find out what makes what you do different from your competitors. Use that to sale your services. The company I work for charges way too much for the work they do, but they have an edge over the competition and that actually makes them top in the market. Sometimes people do not mind paying for something higher if they get something that no one else offers.
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