Help with pricing.

I've been planning out an offline business for a little while now but one thing that I've been stuck on is the pricing for website creation.

I plan on solely using Wordpress and simply buying premium themes then customizing them to the clients needs. I do have HTML/CSS, Java and Java script knowledge as well as about 6 years experience with Photoshop and other design programs, but I don't want to build sites from scratch (hence Wordpress and buying premium themes) But this DOES mean I can make adjustments to the themes as needed.

My plan was to host all of my clients websites on my own shared hosting and then charge something like $49 a month for maintenance. This would also cover making any changes they needed. I was thinking $499 for creation and then $49 a month there after. I was then planning on creating additional services (SEO, content creation etc) and charging extra per month for those as well, but I'll decide on if I want to do that once I get the website creation up and running.

Does using Wordpress and premium themes mean I should decrease the pricing?

I'd really appreciate your thoughts and input. Thanks.

If you're going legit, don't lower the pricing - that's already quite low. It all depends on the client and you should never have fixed prices. For example, one website that involved allot of work and an eCommerce solution I did for $700 because it was for a friend and they were boot strapping. However, I have also charged $6k for a relatively simple website with a simple clean design. Be confident in the services you're offering, and do everything you can to look pro (freshbooks for invoicing, accept credit cards, ext).

What makes a website shine is the design... invest in a designer to do a nice logo for you and blow your clients away rather then just meeting your their needs. If you provide a great service, your business will naturally grow - trust me.

Those prices seem pretty fair. It really depends on the quality of the site. I outsource to a guy in my city who does all WP and he charges $750-1500. All my clients seem pretty happy with him. Make sure you can explain what the $49/mo includes for the 25% who actually ask. Try to build up a solid portfolio as soon as possible. Even if it means doing the work at cost.

$49/mo seems a bit high for hosting -- once the site is up and running there is no maintenance, so that might be a hard sell. If you're targeting mom and pop stores, I think the going rate is about $1500 for a 3-5 page web site. I would charge $100/year for hosting. But I live in California...depends on your local area and what they would consider normal.

They will be comparing your service to $7/mo godaddy hosting and web site creator...so it's pretty tough to charge a premium if they are not in the web industry.

I also think you should not be charging for design if you're buying a wordpress premium theme. At least don't mislead the client thinking it's a custom design.

You really have to look at your market. Seriously.
Around my area, there is no way in hell I can sell $1,000 SEO. Forget it.
My marketing business took a toll thanks to the economy, shit. So now I'm rethinking my strategy and pricing. Shit this sucks.

I think that it is important to be flexible with your pricing. There are too many variables to make it fixed, including things like industry you are marketing to? Also remember, a website is not a homogonous product, therefore does not need to be priced the same.

Try to sell your site on the benefits that the site will bring to the clients business in increased sales and building their brand as opposed to the quality of the design work you will be doing. If you can tell that business owner how the site will boost his business (24/7 access for customers, direct contact forms, etc) and have figures from previous work you have done if you have any, then he will be far more willing to pay a high price than if you just tried to sell him on a sexy website.

I would agree with the others that your hosting fee is too high, but the price for the site seems to be in the right ball park. Perhaps sell your first site at this price to get your first few clients and then consider raising the price every few clients, until your happy that the price you're charging is fair.

Best of luck

The quality of replies has been astounding. Thanks a lot guys.

Taking into account what has been said, I think I'll opt for a "give a quote" method rather than giving a flat fee. I'll get people to tell me what they want and then adjust accordingly. I'll also drop the price of the hosting to something a tad more reasonable.

Another tip I would recommend is to ask them what their budget is. People tend to want to spend close to their full budget in my opinion, to get the best job they can. So if they say they had a budget of $2000 and you were only going to quote them around $1000 you can instantly inflate your price for that client knowing that they can afford it and are looking to spend that. More money in your pocket! Not everyone will give you their budget though, but there is no harm in asking.

dennis_797 said:

Another tip I would recommend is to ask them what their budget is. People tend to want to spend close to their full budget in my opinion, to get the best job they can. So if they say they had a budget of $2000 and you were only going to quote them around $1000 you can instantly inflate your price for that client knowing that they can afford it and are looking to spend that. More money in your pocket! Not everyone will give you their budget though, but there is no harm in asking.

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That's a really good idea. I think I know how to slip the question in subtlety as well.

Thanks again!