Author Topic: Buisness pricing help  (Read 2001 times)

  • Offline neXus

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Buisness pricing help
on: March 31, 2006, 16:31:43 PM
Well, i cant properly work but when i can i am doing some sites or bits for people as well as possibley some database stuff, images etc.

Now i been i feel a bit ripped off not being payed enough for past work, my fault yeah, but never mind.

I was looking at help or links or advice on what to prices i should set. A non static web page compared to a php page, databse functions.....etc?

Or since i offer a wide varity of things do pay per hour, or both?

As you may see i have no clue, so any links i can read to learn, or you guys with businesses offer any infomation?


Thank you

  • Offline Pete

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Re:Buisness pricing help
Reply #1 on: March 31, 2006, 16:37:25 PM
Work out your overheads, set a fixed rate for yourself, say £x0 per hour, and go from there. For something like a website Id set a fixed price for the simple stuff and then do individual quotes for more tricky stuff.
I know sh*ts bad right now with all that starving bullsh*t and the dust storms and we are running out of french fries and burrito coverings.

  • Offline Dave

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Re:Buisness pricing help
Reply #2 on: March 31, 2006, 16:49:40 PM
Just a thought (im not talking from experience here just thinking out loud) - might be worth setting your prices fairly low to start with & get a few projects under your belt - then when you have got work you have done for previous clients ready to show to new potential clients you can start putting your prices up. When youve built up a good portfolio of work then charge as much as you can realistically get away with. Im pretty sure the prices for web design work vary considerably so there is a lot of scope for progress as far as pricing is concerned. Prob a massive difference in price between the people starting out just charging enough to get by right up to the media firms in london charging huge ammounts & employing dozens of creative types on thier projects.

  • Offline neXus

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Re:Buisness pricing help
Reply #3 on: March 31, 2006, 17:10:07 PM
Quote from: Dave
Just a thought (im not talking from experience here just thinking out loud) - might be worth setting your prices fairly low to start with & get a few projects under your belt - then when you have got work you have done for previous clients ready to show to new potential clients you can start putting your prices up. When youve built up a good portfolio of work then charge as much as you can realistically get away with. Im pretty sure the prices for web design work vary considerably so there is a lot of scope for progress as far as pricing is concerned. Prob a massive difference in price between the people starting out just charging enough to get by right up to the media firms in london charging huge ammounts & employing dozens of creative types on thier projects.


I have about 20 projects at least under my belt, and did price per thing and not been 100% with them hence i need some reading material etc to help sort out my pricing properly.

  • Offline Mardoni

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Buisness pricing help
Reply #4 on: March 31, 2006, 22:23:38 PM
I price for a job in the following way:

1) Break down job into the high level tasks that will need to be completed.
2) Assign each task an estimated work time (in half hours)
3) Read back through all the tasks and see if there is anything *obvious* that has been left out.
4) Total up the estimated hours (round up to closest full hour).
5) Add 10 to 20% contingency time (sometimes more if the job is something i have not tried before).
6) Determine an hourly rate. I use a little under my current contract rate for small jobs, or my actual rate for medium / large jobs. (Rate atm is £35p/h but I started out on £18p/h about 3 years ago).
7) Multiple Time by Rate to get a "feeler" price.

Then apply the Psychology price adjustment factor...

8) I consider how much I want to do the job. If I dont really want the work then I add around 35 to 50% to the price from step 7. If I want the job then I consider the price in 7 and either leave it as it is or reduce it until I am happy that the client will accept.

9) The ?am I quoting a fair price? phase:
Once I have arrived at price, I step back and try to visualise the finished product. Once I have a picture in my head, I ask myself how much *I* would expect to pay for that product. Then if I feel I would pay more; I increase again, otherwise if I think the price is fair and I want the work I go with what I have after step 7.

10) Finally; the ?will I get out of bed for that? adjustment:
My last step in pricing is deciding whether or not I can really be bothered to do the required work for the money I will get. If I don?t believe that the job is worth the reward (and effort), I will decline the job.

I also employ one other tactic; Set yourself a bottom line price. If you get into negotiations with the client DO NOT allow yourself to drop below that price regardless of the concessions they make. Obviously if they start stripping away requirements then you have to go back to step 1 and repeat the above process.
The worse thing (imo) that you can do is attempt to negotiate a price once the requirements have changed.


The last thing I will add is that if you are working for yourself and have minimal overheads, you should decide what it is you?re trying to achieve.
-   If you want a good, relaxed, quality of life then don?t take on jobs that you know will stress you out; unless the money is great ;)
-   The opposite is obvious; work your nuts off and one day you might have enough money to enjoy life again ?

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