pricing on websites
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@dafyre said in pricing on websites:
The problem is that with 99% of the companies out there that don't display at least ball park pricing are two fold (as I see it)...
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It IS costing you customers. Most of us assume that if you don't show your pricing, then your product is too expensive.
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If we give out any contact information at all, the sales reps begin to hound us relentlessly. No thank you.
Damn, you hit the nail on the head.
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@dashrender said in pricing on websites:
We're medical, so it's a bit different - but yeah, I think we should have a price for procedures on our website, but it definitely becomes complex. If for example, you have a pre-existing condition like arthritis, Medicare and most insurance companies allow you to charge a higher amount for treating those patients because you (the doctor) have to bring that into consideration for any diagnosis and treatment.
Example - I called a dermatologist once about a rash I had (poison ivy). I asked them how much for an office visit - they quoted me $95. The bill it was for $135. When I asked why, they said - oh you had XYZ pre-existing, so because of that we have to bill at a different level.
So listing pricing in this case would be challenging at best, and useless at worst.
As opposed to being able to just charge anything they want after the fact
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@scottalanmiller said in pricing on websites:
@dashrender said in pricing on websites:
We're medical, so it's a bit different - but yeah, I think we should have a price for procedures on our website, but it definitely becomes complex. If for example, you have a pre-existing condition like arthritis, Medicare and most insurance companies allow you to charge a higher amount for treating those patients because you (the doctor) have to bring that into consideration for any diagnosis and treatment.
Example - I called a dermatologist once about a rash I had (poison ivy). I asked them how much for an office visit - they quoted me $95. The bill it was for $135. When I asked why, they said - oh you had XYZ pre-existing, so because of that we have to bill at a different level.
So listing pricing in this case would be challenging at best, and useless at worst.
As opposed to being able to just charge anything they want after the fact
LOL - I'm not sure I see it as a change after the fact, but rather an invalid and incorrect answer given in the first place.
Instead of telling me $95, she should have said something like - it could be between $95 - $175 (assuming that's the range) depending on any pre-existing conditions you have. -
@dashrender said in pricing on websites:
Why and to what end?
I don't have my hourly rate on there. The reason for that is I have a different hourly rate for different clients.
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@dafyre said in pricing on websites:
The problem is that with 99% of the companies out there that don't display at least ball park pricing are two fold (as I see it)...
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It IS costing you customers. Most of us assume that if you don't show your pricing, then your product is too expensive.
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If we give out any contact information at all, the sales reps begin to hound us relentlessly. No thank you.
+100
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@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
Why and to what end?
I don't have my hourly rate on there. The reason for that is I have a different hourly rate for different clients.
So you list the highest rate on the site, and if you get a new customer, you can offer a discount based upon a contract, etc.
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@dashrender said in pricing on websites:
@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
Why and to what end?
I don't have my hourly rate on there. The reason for that is I have a different hourly rate for different clients.
So you list the highest rate on the site, and if you get a new customer, you can offer a discount based upon a contract, etc.
and then you run the risk of scaring people off...
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The second reason is you can't put a price on a project like an Office 365 migration. At least I can't afford to without knowing a lot of details about the environment.
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@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
Why and to what end?
I don't have my hourly rate on there. The reason for that is I have a different hourly rate for different clients.
So you list the highest rate on the site, and if you get a new customer, you can offer a discount based upon a contract, etc.
and then you run the risk of scaring people off...
You don't want those people anyway.
Note: Not on our website either, but not my call.
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@mike-davis said in pricing on websites:
The second reason is you can't put a price on a project like an Office 365 migration. At least I can't afford to without knowing a lot of details about the environment.
That is a project, not an hourly rate. projects are based on hours, but hours cannot be determined until they are analyzed.
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IT Services rates are not broadly standardized like other professional services yet. It is coming, but it is not there yet.
Mostly this is do to the extremely low barrier of entry caused by the idiots that sort of know something about a computer and the common person being so dreadfully fucking stupid.
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@mike-davis said in pricing on websites:
The second reason is you can't put a price on a project like an Office 365 migration. At least I can't afford to without knowing a lot of details about the environment.
I'm not sure you need to price something specific like that.
You might list something like
Cisco firewall support $200/hr
Windows desktop support $100/hr
Unifi hardware support $150/hr
etc
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues. -
@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
Customers want what customers want. Project pricing is essentially always bad, but customers demand it.
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@mike-davis said in pricing on websites:
The second reason is you can't put a price on a project like an Office 365 migration. At least I can't afford to without knowing a lot of details about the environment.
But you can put a price on the time.
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@scottalanmiller said in pricing on websites:
@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
Customers want what customers want. Project pricing is essentially always bad, but customers demand it.
@scottalanmiller said in pricing on websites:
@mike-davis said in pricing on websites:
The second reason is you can't put a price on a project like an Office 365 migration. At least I can't afford to without knowing a lot of details about the environment.
But you can put a price on the time.
This is why, as @Dashrender suggested, make the project price high enough to cover your time for problems that will arise.
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I agree. Nothing more frustrating than having to schedule a meeting a week out, sit through a boring demo, only to find (just as you suspected) it was way overpriced to begin with.
If the concern is that the buyer needs to be shown all that value, handle it be making a better website that explains whatever that extra value is.
I have sat through meetings where I did discover things that changed my mind about the higher price, but it could easily have been placed on the website.
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@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
As @dafyre said, customers demand it - and for good reason. They have to make a business case for the project. They would rather have a set fee than roll the dice that everything works the way it should and it might cost them a little less.
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@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
As @dafyre said, customers demand it - and for good reason. They have to make a business case for the project. They would rather have a set fee than roll the dice that everything works the way it should and it might cost them a little less.
That's fine - post an hourly rate on the website, and if they don't think you're outragous, they'll call asking for a project quote - if they think your hourly is to high, they'll move. As @JaredBusch said - you don't want those that move on anyway.
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@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
As @dafyre said, customers demand it - and for good reason. They have to make a business case for the project. They would rather have a set fee than roll the dice that everything works the way it should and it might cost them a little less.
How is it rolling the dice, though? You have to roll the dice in the other case, and therefore must charge them enough to cover for that. Plus you have to charge them for figuring that stuff all out (scoping.)
It doesn't protect them, it pretty much just guarantees the worst case scenario.
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@scottalanmiller said in pricing on websites:
@mike-davis said in pricing on websites:
@dashrender said in pricing on websites:
But really, should an O365 migration be a project price and not hourly? You'd have to make the project price significantly more than the anticipated hourly to cover your bases in case there are issues.
As @dafyre said, customers demand it - and for good reason. They have to make a business case for the project. They would rather have a set fee than roll the dice that everything works the way it should and it might cost them a little less.
How is it rolling the dice, though? You have to roll the dice in the other case, and therefore must charge them enough to cover for that. Plus you have to charge them for figuring that stuff all out (scoping.)
It doesn't protect them, it pretty much just guarantees the worst case scenario.
The reality is that many MSPs don't charge enough to really cover their potential losses (and then end up eating it when it happens) and aren't charging enough to show that it's really just like that hourly will be more cost effective.
