An Opinion on Value-based Pricing!

Updated: Sep 2, 2018

A question every website owner should ask themselves, is the company website working effectively for our business? if you don't think it is then you may have undervalued the basic determinant of web design and missed an opportunity to invest cost-effectively to increase profit and grow the business!

Time = money = perceived value by the client

Why value-based pricing?

In commercial transactions, the quality of goods and services increases as the prices increase, for example, the more one pays, in theory the better the merchandise and services a client receives.

Value-based pricing is used in virtually every industry, to price everything from TVs and drugs to oil rigs and air-planes. Despite its popularity, marketers have significant misconceptions about the approach.

Applying value-based pricing and adding value to web design must surely be good practise, every one benefits and why web designers should seriously consider the merits of intelligent value based pricing for their web designs based on the perceived value for a client!

The most dangerous misconception about value-based pricing is it can create false, high expectations. Many marketers think that value-based pricing is a panacea. If they use it, they will make lots of money under any circumstances.

Not true! The success of value-based pricing depends on how smartly competitors have priced their design services. If they have set untenable low prices, value-based pricing can’t save you or them.

A happy client with a web design that creates interest

Web designers must place a value on the services they offer their clients, if they value web design only on the time it takes to design a website they are missing the point about web design.

Websites will not run themselves, like most vehicles they need a driver, usually the owners, however under used neglected websites won't do much if anything for the business even if they are stunning.

A web design agency is a brand and in essence, comes with skills, a designers life experience, knowing how to market a product/service through design, define markets, methods of entry, product positioning, competitor presence and so on, therefore by definition presents real value to a potential client!

With value-based pricing, the web designers goal is to put a value amount on its differentiated features on offer when applied to making sure their design are functional, effective and actually work for the clients business, stimulates growth, awareness and sets them apart from the crowd.

The method’s focus is on features that add value to the customer and that can be converted into tangible money values.

Features such as, online presence audit, identifying niche markets, how to present a product/service, what are the benefits in other words doing things a little differently, “longer-lasting by X%,” “faster by Y hours,” “less likely to break down by Z%,” all work nicely because they can easily be converted into money.

Offering a cheap web design, the carrot stick

Offering low cost web design is an example of untenable pricing, it simply cannot be done with benefit to the client paying for the web design.

Quality web designer agencies know the value of creating functional cost-effective websites that actually work for their clients and can justify the real time it needs to make the assignment work.

Value-based pricing is an effective method to price services. On the one hand, it’s a lot easier in practice than it appears to be in theory. The marketer needs to identify and assess its services’ differentiated features only (except the brand’s value), not every feature.  And when competitors have priced their products foolishly, value-based pricing won’t help.

With a stronger grasp of how this method works, designers will be able to make smarter pricing decisions, and employ value-based pricing strategies to increase profits for their clients in doing so drive up the value of creative functional web design that work!

Drive up your value, develop a pricing strategy

The message is do not under value dynamic web design, no body gains, tell your clients how much your service is worth to them, price up intelligently and develop a value-based pricing strategy!

Need to learn more........


copyright @ michaeljfoxwebdesign 2020 I All Rights Reserved