Preceived Value and Prices

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Preceived Value and Prices

I mentioned on my Solutions page that I used to charge a very low price to attract businesses who wanted to have a website developed. This was at a time when I was just starting to build websites. The Creation Studio has come a long way since then, but there is one lesson that I want to write about that I have learned along the way.

Preceived Value is golden.

I sometimes have been known to lower my prices below what I believe the value of my services are worth. There are a couple of reasons that I have done this. One is because I wanted to just close the deal and the other reason is because I wanted to work within the budget of the person receiving the web development service. I always try to add exrta value in my services with my clients, such as project completion before an established deadline is due and adding an extra feature and going out of my way to exceed my client's expectations.

It seems; however, that on more than several occations, when I have reduced my prices below what I preceive to be the value of my services, I did not receive the contract. I began to seriously look at why this was and what I discovered seemed to make sense. People have a precevied value on services and are often willing to pay the higher price for this service.  Elizabeth W. Gordon, LLC, highlighted six steps for businesses in her article: Never Compete on Price . They include:

  1. Don’t be afraid to charge what you are you worth.
  2. People like paying for quality.
  3. Take your focus off price and onto to value.
  4. Put the emphasis on quality and service and the experience.
  5. Use your price point to cultivate your niche.
  6. Ask what you can do to add more value and listen.

Even though I understand this concept, I try to stick to my Business Statement: Great Websites, Great Service, Fair Price!  while incorporating the above practices with fair prices in mind. As the owner of the company, I like being able to work with customers to find what is a fair value for both of us. I hope to see you as a customer soon!

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