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Perceived Value in Web Design
Feb 25th, 2010 by Leon

This issue keeps coming up lately, how much to charge for web design services? It seems locally here in Leitrim at least that we are pricing ourselves into the ground with one company doing sites for €99 and another for €14.99 a month. I can’t go that low myself so how can I and others in my industry compete? There’s a thing called perceived value whereby a person shopping for a product or service sees a fantastic price unmatchable by anyone else but gets suspicious at the price. The old saying “if it sounds too good to be true it probably is..”. Also, people might wonder what you could possibly get for so little.

Another issue also crops up for companies that charge so little. They tend to attract clients of lower quality or clients who are happy to pay €99 for a site but want €500 worth of work done! My own method is to keep one eye on the competition, another on trends, another on my perceived value and another on myself and my offering (I know that’s 4 eyes and I don’t wear glasses!). In other words, I try to be competitive with most other similar companies but I’ll never worry about matching the cheapest as I believe my service is second to none.

In summation, its not always necessary to ‘match’ or beat competitiors prices, it’s more subtle than that these days. People will be happy to pay more if they know they will get personal attention and a good service and especially if they’ve been referred by a friend which thankfully is where most of my work comes from anyway.

These companies don’t worry me!

Leon.