Are You Just Squeezing Money?

I talked with a friend who just launched a new agency in our town.

Her goal was to grow her agency working with local clients.

She asked about publishing her costs on the website. I told her it was a bad idea.

When you lead with price, you fix prospective clients to a dollar amount.

You compete on price instead of skill and value.

While we don’t “custom” do all our pricing, our new business process has questions designed to learn the client’s budget and scope.

That allows us to submit an accurate bid.

There’s a smaller, well-known local agency that does a lot of web design.

They charge a minimal one-time payment and have a monthly fee for all web projects.

We charge $6,000 minimum for websites. Most projects are higher.

Our average website takes 6-8 weeks to complete. We have a strong process and lots of experience. It’s very profitable.

Back to the other agency.

I did the math. Under their model, it would take them 98 months to make the same amount of money our agency does in 3 months.

Maybe it works for them.

But it won’t work for most agencies, including my friends.

Don’t compete on price. Don’t just squeeze money from a market.


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