1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

That moment when you realize you under sold yourself.

Discussion in 'BlackHat Lounge' started by bmminc, Apr 7, 2015.

  1. bmminc

    bmminc Regular Member

    Joined:
    Nov 29, 2014
    Messages:
    391
    Likes Received:
    287
    We have been selling websites and marketing to local clients for a few months with some success. Today we had a meeting with our first customer that contacted us from a referral.

    When we set up payment the client asked how much, we stated $500 a year. He heard $500 a month, and was perfectly fine with that amount. We had already written the price down on paper though so we stuck with our original pricing of $500 a year to remain professional and keep rapport.

    Next meeting we will learn from that mistake though.

    To think our very first client we sold them a website for $150, and we were scared to ask for more. Now its $500 a year and we should have asked for 10 times that amount.

    Live and learn!
     
    • Thanks Thanks x 1
  2. BigTroll

    BigTroll Jr. VIP Jr. VIP

    Joined:
    Oct 15, 2014
    Messages:
    1,922
    Likes Received:
    754
    Occupation:
    CPA
    Location:
    ROMANIA
    He said the customer came from a refferal. Local marketplace. And when he speak with the refferal, he will realise that he's paying $500 a month for something that another guy pay $500 a year. This shit will ruin his creadibility.
    Anyway, your mentality is sucks ;)
     
    • Thanks Thanks x 4
  3. SYKing

    SYKing Jr. VIP Jr. VIP Premium Member

    Joined:
    Apr 22, 2010
    Messages:
    2,333
    Likes Received:
    370
    Occupation:
    Student
    People learn from mistake not from what they read, Always ask for a price what it's worth, If one is Genuine buyer he will buy from you in that price.
     
  4. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

    Joined:
    Aug 31, 2013
    Messages:
    7,746
    Likes Received:
    13,906
    Gender:
    Male
    Occupation:
    Death
    Location:
    Southern California
    Home Page:
    You really need to charge more. Not only will the cheap prices attract cheap clients, but you're also going to be stuck selling websites for $500/year per client. This client was fine with $500/month, so why not have a meeting with them and bring up how the increased price is not only still competitive with the prices of other web designers, but how it can greatly benefit their website.
     
    • Thanks Thanks x 1
  5. Sombrero

    Sombrero Supreme Member

    Joined:
    Feb 28, 2011
    Messages:
    1,216
    Likes Received:
    1,034
    Occupation:
    Driver
    Location:
    On The Road
    I'm currently selling computers using free classifieds. Today I got a call early in the morning regarding my $120 HP Computer (2GB RAM, 80GB Hard Drive, Single Core), he just wanted the tower and he aggreed to pay the same amount without the monitor, keyboard and mouse, I told him that I had a much better tower for $120 (Dual Core, 4GB RAM, 320GB Hard Drive) so I gave him a better computer.

    I could gave him the HP Computer and get the $120 BUT I don't feel like taking advantage of people. He was very happy with the computer and I was happy to offer a good computer.

    I'm not going to sell you something with an unfair price, I'm not that type of person.

    Do what is right.
     
    • Thanks Thanks x 4
  6. bmminc

    bmminc Regular Member

    Joined:
    Nov 29, 2014
    Messages:
    391
    Likes Received:
    287
    Thanks guys. And to be honest I wouldn't be afraid to charge $500 a month at this point. However we are still fairly new to the local area and we can always let future clients know the first few clients were at a special price since we were newer.

    The big lesson I learned though was that I undervalued our services. And when thinking about it, we really do give them more than what they pay for. It is ok though for now because word of mouth is everything around here.

    The person who referred this new client only paid $150, and there was no issue asking this guy to pay more..he didn't question it at all. We focus on selling them on the value and we add in extras.

    We meet clients in person and treat them to a meal as well. We are very personable and there is a lot to be said about having a family owned business that can relate to other family owned businesses.

    I would never be shady and go back on something we have already told a client though. In the future however we will charge more. Probably around $1000 a year, as that way we can take on 3-4 clients a month and be financially sound.

    From there we can move on to bigger things. Right now though, we are still learning our trade and perfecting everything.
     
    • Thanks Thanks x 1
  7. The Scarlet Pimp

    The Scarlet Pimp Senior Member

    Joined:
    Apr 2, 2008
    Messages:
    884
    Likes Received:
    3,324
    Occupation:
    Chair moistener.
    Location:
    Cyberspace
    interesting lesson. i'm getting ready to contact local clients to offer a new business service and i'm thinking of charging under $20. a month to make sure people sign up. maybe i should charge them more...
     
  8. EverestOnline

    EverestOnline Jr. VIP Jr. VIP

    Joined:
    Apr 19, 2013
    Messages:
    157
    Likes Received:
    9
    Occupation:
    Web services company
    Location:
    Manila, Philippines
    Home Page:
    Charge it to experience. It is a good lesson learned.

    I admire that you refuse to go back on your word. Just make sure you don't put yourself in another position where you may have to. If you have good quality products and services, charge accordingly.
     
  9. qrazy

    qrazy Senior Member

    Joined:
    Mar 19, 2012
    Messages:
    1,115
    Likes Received:
    1,725
    Location:
    Banana Republic
    It's good that you stuck to your original pricing. If it's your first customer, then it's important not to get distracted and stick to your original plans until you get a lot more clients and build your business reputation. You can always add new services and sell them at different prices depending on the customer at a later point of time.
     
  10. ok888

    ok888 Elite Member

    Joined:
    Nov 23, 2010
    Messages:
    2,369
    Likes Received:
    654
    I mean your kind of stuck right now, but you can add another package with extra addon which the $500/year client wont have. I'm sure they will kindly switch to the higher price package if you make it convincing enough
     
  11. AkademikJeanius

    AkademikJeanius Registered Member

    Joined:
    Nov 17, 2014
    Messages:
    90
    Likes Received:
    33
    Occupation:
    Being human
    Location:
    Cloud 9
    This is one of my most prevailing life challenges in balance: Not "overcharging" but not undercutting myself for products/services offered. Time, we all know, is the most indispensable asset. I have a small fledgling IT business and I charge $60/hr for services. I still get cold and clammy when I have to discuss what's owed after services rendered however NONE of my clients have ever even so much as batted an eyelash once everything is added up and they're writing the check/swiping the card/counting the cash. They actually, often times, insist on paying more AND I only advertised the first month (a year and a half ago). And even though I've since moved beyond focusing on this business, I still get random referrals and repeat customers.

    That being said, fair/unfair, like all things, is relative. People pay hundreds/thousands for items that cost a fraction of that to produce. Nature of the beast. Get right or get left....
     
  12. tony_d

    tony_d Elite Member

    Joined:
    Jun 22, 2013
    Messages:
    2,583
    Likes Received:
    3,179
    Location:
    1600 Amphitheatre Parkway, Mountain View CA
    You can't sell a service for $20/mth, let alone deliver it.

    If you're 'out selling' B2B, you need to be charging at minimum $400-$500 a month in order to have any chance to scale (assuming your service delivery costs are <10%). Anything less and you just can't run a business.
    You could operate as a single person hobby, but not a business.
     
    • Thanks Thanks x 1
  13. mickyfu

    mickyfu Jr. VIP Jr. VIP

    Joined:
    Dec 14, 2011
    Messages:
    7,580
    Likes Received:
    21,581
    Occupation:
    King Of Crypto C
    Location:
    Solihull Young Offenders
    When he made me swallow and I only charged him $5.
     
    • Thanks Thanks x 2
  14. archon10

    archon10 BANNED BANNED

    Joined:
    Oct 10, 2011
    Messages:
    1,181
    Likes Received:
    8,223
    You're getting $5??? Shit......
     
    • Thanks Thanks x 6
  15. nutserious

    nutserious Power Member

    Joined:
    Jul 27, 2010
    Messages:
    535
    Likes Received:
    88
    Have to say OP, you got really nice local clients. I'll be happy if the clients I meet pay quarter of what they pay you. Sucks hard.
     
  16. The Scarlet Pimp

    The Scarlet Pimp Senior Member

    Joined:
    Apr 2, 2008
    Messages:
    884
    Likes Received:
    3,324
    Occupation:
    Chair moistener.
    Location:
    Cyberspace
    interesting that you mentioned "$400-$500 a month" because that is what one rival charges. the problem is those rates just wouldn't work with any business around here because absolutely nobody would pay it.

    since it's an 'autopilot' screening service (once people sign up i do not have to do anything else) i *think* i could get by only charging $20. - $25. a month.

    oddly enough one of my concerns is that some people may think there's something wrong with the service because of the lower price. :batman:
     
  17. gb

    gb Regular Member

    Joined:
    Nov 8, 2014
    Messages:
    293
    Likes Received:
    151
    One of my new clients was paying $1000 month for their website! Crazy.

    It was just a wordpress site and the company charged $250 per edit!

    Now that they've switched over to me, they're getting better service and a deal.

    Never undercharge and never overcharge. Ask for what you value your time at. Here's a good article that'll help you figure out what to charge.
     
  18. Panoush

    Panoush Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 6, 2014
    Messages:
    364
    Likes Received:
    112
    Occupation:
    Affiliate marketing + Youtube
    Location:
    EU
    yup, I undervalue myself all the time! feels bad ... I'm getting much better at it though
     
  19. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    17,342
    Likes Received:
    31,827
    Occupation:
    Selling CPA Sites
    Location:
    Not England
    Home Page:
    That is actually a very common train of thought; "You can't get any value for X amount of dollars!" is a real normal train of thought.
     
    • Thanks Thanks x 1
  20. bmminc

    bmminc Regular Member

    Joined:
    Nov 29, 2014
    Messages:
    391
    Likes Received:
    287
    My wife and I have a meeting Monday (yes we schedule business meetings), and the general thinking so far I believe is that we are going to want to take on fewer clients and charge more to be able to do more for them and give them better quality.

    We have found cheap clients want the WORLD for $1. While clients who pay are usually easier to work with. Plus, it saves us from stressing about landing 20 jobs a month to pay the bills. It makes meetings less stressful as we KNOW not everyone will buy...and that is fine.

    So we want to make $3k to $4k a month to start out. This will pay for all of our bills and allow us to save extra for investing, while still giving us free time to enjoy our lives.

    So now we just have to decide how many clients we would like to work with and have the time for. 10 clients would be fine. Once we have their sites up and going the upkeep isn't too bad and with a higher price we can outsource things to people who could do it much better than us.

    So if we want to make $3k to $4k a month with 10 clients, that is $300 to $400 a month per client, which is reasonable.

    We are dong some under-cover calls to the competitors in the area to get their pricing. I believe they still charge 5 times that.
    We will also be able to do referral rewards. If you tell someone about us and they become a client you get $50 cash. Promotes word of mouth like a mother fucker.

    It is actually fun working with local clients who understand they have to pay to run a business and they need a good website. You can relate a lot to them and you can also learn a lot.


    The unfortunate part is that i've still been working for a local gaming company as a community manager, but they pay only $150 a week. I've been slacking on that front because i've been focusing on my own business. I've started to notice how undervalued they are with my pay.

    It is funny to think that our first client we were scared to ask them for $150 for a fully featured website with a month of SEO, custom graphics, a couple youtube videos, and more.

    Now I just have to hope that our client acquisition game is good enough to land 10 clients at that price.