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A pricing question -- what's fair?

Discussion in 'General Business' started by donutsarecool, Apr 17, 2020.

  1. #1
    Hi everyone,

    I have a long time client (good relationship) and I recently designed and set up a webinar for them using an online software. No coding involved, just using the WYSIWYG they have to set up the template with the designs I've made.

    Months later (now), they want me to do another one for them using the same layout. I know this won't take me long, but I've only been charging them by the hour so I don't want to undercut myself because of this. I want to switch to a flat fee but I'm not sure how to go about this. I feel awkward, weird and unsure what's fair to them. I want to charge them by what I think is fair to me which would be a little bit more than what I had charged them when I developed the template, for fewer hours. I want to do this because I felt I had undercharged them for a webinar development (to be honest, I don't even know how much this goes for in the market and I've tried looking) but that's my fault. So now I want to correct it by charging more. This doesn’t sound fair to but I also don’t want to undercut myself. How do I turn this around?

    Factors that make me feel unsure:

    • They have another designer to help them so I don't want to lose this project to them. They're coming to me first because I created the template.
    • The economy right now with COVID, I want to be considerate of other people's financials
    • How do I justify charging more than what I had charged for the first webinar but for less workload this time?
    Or should I just charge just a bit less than what I had charged them?

    Your insights would be most appreciated. I'm still learning how to price properly and understanding my value.
     
    donutsarecool, Apr 17, 2020 IP
  2. jrbiz

    jrbiz Acclaimed Member

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    #2
    Pricing is one of those sales/marketing tasks for which there is never a right answer. You pick something and will never know if you could have gotten more or should have quoted less. Of course, the more you know about your customer, the better your decision might be. FYI, I have been in sales/marketing for 30+ years.

    My suggestion is that you go back to your client and have a heart-to-heart discussion. Tell them that you really like working for them and want to keep their business. Then mention that on the first project you did for them you ended up undercharging them by a little bit based on the work involved. Now that you have a better idea of the work, you would like to charge them a bit more, but will guarantee them a fixed cost that you will not exceed. So, they will pay a little more, but will also be able to budget exactly what is needed with no risk of the project going over budget. That way, you are getting something and they are getting something.

    Note, that while you are discussing this with them, you have to listen carefully for any indications that this price increase will cause them to shop around. If that is the case, you will then need to decide whether the price increase is worth the risk of losing them. Good luck with this!
     
    jrbiz, Apr 18, 2020 IP
  3. NetStar

    NetStar Notable Member

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    #3
    Wow so timid. This is business. Gain some confidence.

    You don't need to justify anything. Give them a price and let them make the decision if they want to negotiate. If they choose to negotiate below your fair price then WALK away with self worth. A long time ago when I was just beginning web design I charged someone $300 (hahaha) for a web site, shopping cart, control panel and email system. All custom coding and design. It took a while to make but I needed the work, practice and addition to my portfolio and resume. I realized when I started I charged TOO little. After I finished they wanted another site of similar specs. I could reuse the code. I raised my price to $500 even though I knew it was worth more. They said "um... we were thinking like $150 since we gave you the business before". I was so insulted I respectfully declined. 2 weeks later they reached out to accept the $500 offer. But guess what? I already grew a pair of fucking balls and identified my self worth. I never replied to their email. Their web site was never built by anyone...........
     
    NetStar, Apr 19, 2020 IP
  4. NetStar

    NetStar Notable Member

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    #4
    "The economy right now with COVID, I want to be considerate of other people's financials"

    Stop it. It's a business. They need the webinar software because they identified an area in virtual space to make more $$$. You are so passive. They aren't in a poor financial situation right now. They are looking for net gain right now.
     
    NetStar, Apr 19, 2020 IP
  5. superrichguy

    superrichguy Well-Known Member

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    #5
    They contacted you. Reply with of course I can do that. It will be X amount and I can have it up and running today.
     
    superrichguy, Apr 19, 2020 IP
  6. Techie Geek

    Techie Geek Well-Known Member

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    #6
    I don't know if this necessarily makes sense. Business is business, no need to pass up a client to uphold an ego.
     
    Techie Geek, Apr 19, 2020 IP
  7. NetStar

    NetStar Notable Member

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    #7
    No. Nothing to do with ego. It was the realization that I have sold myself short and when the client didn't accept the offer and countered with something that did not make financial sense I moved on. After the client went a head to do some research they came back to see if I would do it for the original offer. My business moved on. I was not interested.
     
    NetStar, Apr 19, 2020 IP