Should You Post YourPrices On Your Website?
By Cliff Ennico
www.creators.com
"I just started a small service business out of my home.nbsp; Becausemy overhead is absolutely rock-bottom, I can charge significantly lessfor my services than my competitors.nbsp; I just set up a website formy business, and I'm thinking of putting a 'price list' on the homepage showing the prices I charge for different services.nbsp; I wantpeople to see just how affordable I am.nbsp; But a couple of friendshave told me this would make me 'look cheap' and is an unprofessionalthing to do.nbsp; Are they right?"
This is one of the toughest marketing decisions for any servicebusiness.nbsp; The answer will depend on (1) the services you areproviding, (2) the customers you serve, and (3) how much you want to belocked in to a specific price structure.
Your Services.nbsp; Generally, if the service you provide is a"commodity", such as landscaping, where "flat fees" are normallycharged for specific services, it's a very good idea to post yourprices on your website.nbsp; If your service is more "professional" innature, such as marketing consulting, with lots of variables that willaffect the prices you quote for specific jobs, then it's probably not agood idea to post specific prices, although you might want to considerposting your hourly rate, a list of factors that will affect the pricequoted for a specific job, and perhaps some "ballpark estimates" ofprices you have quoted for the most commonly requested services.
Even within a particular profession, your decision may vary dependingon the "culture" associated with the specific services youprovide.nbsp; For example, a lawyer specializing in wills, trusts and"estate planning" work for wealthy individuals will probably not posther prices on the web for fear of being perceived as "low class".nbsp;
Your Customers.nbsp; If you are a consultant for large, publiclytraded corporations, you absolutely should NOT post your prices on yourwebsite.nbsp; Corporate clients will indeed think you areunprofessional if you post your prices on the Web, and will questionwhether you truly understand the corporate market.
If your clients are entrepreneurs, small business owners, and people(like yourself) who work out of their homes, then you absolutely shouldpost your prices on your website.nbsp; These folks are extremely priceconscious, they are generally squeamish about negotiating prices, andthey probably think they can't afford services from anyone in yourprofession.nbsp; Offering them a "menu" is a great way to send themessage not only that they can afford you, but that you really careabout them because you will be sensitive to their budget.
"Locking Yourself In".nbsp;Once you have posted prices on your website, you are "locked in" tothose prices, and may have a tough time changing them when you realizeyou set them incorrectly.nbsp; If you are not 100% sure what yourprices should be, or if there are factors that might cause you to quotedifferent prices for identical jobs, don't post specific prices on yourwebsite.
I currently have two websites for different aspects of my career.nbsp;Here are the decisions I made in each case about posting my fees:
The first site is for my law practice.nbsp; Since I deal only withsmall businesses and their owners, I posted an extensive list of pricesfor certain matters I commonly handle for my clients, such as reviewingcontracts and leases, forming corporations and limited liabilitycompanies, and other transactions for which I can charge a "flatfee".nbsp; Just the fact that I charge flat fees for certain legalwork is enough to set me apart from my local competition.
The second site is for my professional speaking activities.nbsp; WhileI do have "standard charges" for keynote speeches, panel discussions,and all-day seminars, I prefer not to post these on my website, becausedifferent circumstances can lead to different price quotes, and I needto ask lots of questions before I can quote an exact price.nbsp; Forexample, someone who wants me to give a one-hour keynote speech inPhiladelphia, which is only a two hour Amtrak train ride from my home,is going to be quoted a lower speaker's fee than someone who wants meto give a one-hour keynote speech in California.nbsp; While the twospeeches may be identical, the latter will require a cross countryplane trip and one if not two overnight stays in a hotel, which willtake me away from my law practice and otherwise disrupt my life to amuch greater extent than the Philadelphia gig.
One more thing:nbsp; when you change your prices, be sure you updateyour website before you start quoting difference prices in your e-mailand telephone communications with clients.nbsp; Leaving outdatedprices online is one sure way to get an angry response from a clientwho's been paying higher prices and then stumbles upon your websitewhile Googling something else . . .
Cliff Ennico (
cennico@legalcareer.com
)is a syndicated columnist, author and former host of the PBS televisionseries 'Money Hunt'. This column is no substitute for legal, tax orfinancial advice, which can be furnished only by a qualifiedprofessional licensed in your state. To find out more about CliffEnnico and other Creators Syndicate writers and cartoonists, visit ourWeb page at
www.creators.com
.COPYRIGHT 2009 CLIFFORD R. ENNICO. DISTRIBUTED BY CREATORS SYNDICATE,INC. Permission granted for use on DrLaura.com.
