FreeLists / webproducers / [webproducers] new business, pricing etc.

["m o r r y" <morry@xxxxxxxxxxxxxxxx>]

Hey all,

I've been following a thread on the sig-ia list and thought it was interesting 
and relevant enough for us to discuss. I know it's been a big issue for me 
lately and I've been disscussing this issue with several colleagues offline. 
What are your thoughts:

David R. Austen" wrote:

> If you undercharge today, it will be very difficult to ever ask the
> larger amount necessary to stay in business.

Pronto. Unless the delta is small, it's very difficult to raise fees
substantially once you set a rate. Here's a trick:

If, for whatever reason, you think you need to lower your rates, don't. Use
your standard rate. But give the client an *explicit* break. Literally. Tell
them that "as a sign of goodwill," "since this is our first project." "as a
long time customer," "as a prelude to a larger project" etc., you are
providing services worth $XXX without charge. Make sure they understand that
this is a one-time event, tied to an explicit cause and in expectation of
future business. And *always* get something in return for your largess: more
flexible hours/deadline, more freedom in execution, promotional rights,
intro to their clients/departments, reuse of code, access to their services,
etc. In other words, make them think there is an exchange of considerations
going on here, as opposed to you merely giving up something worth money.



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Questions and comments are welcome just e-mail me, morry@xxxxxxxxxxxxxxxx