420 Creative - Portland Web Design Studio

Negotiating knowledgeably

Oct 07 2009

Angie Herrera

Business, Web Development

Last month I posted a link to a short article on Stepcase Lifehack about being a good web firm consumer. (If you didn't read it, you should.) Even though it was a short article, it packed a powerful punch. So much, in fact, I wanted to expand on the first point the writer, Susan Baroncini-Moe listed: Negotiate knowledgeably.

Susan writes,

"When you get a quote from a web firm, it just makes good sense to shop around. But when you shop around, compare apples to apples. Comparing a quote from an American firm, where you’ll most likely have an English-speaking team to work with, with a quote from a firm in a Third World country, where living expenses are a fraction of U.S. costs, just isn’t fair. You don’t want to approach your web firm with, “Why does it cost this much, when I can have a site built in India for $300?”

"Also, if you’re working with that rare breed of web firm where you’ll get both web strategy advice and search engine optimization, you simply cannot compare the pricing with your standard web design firm. So make sure you’re comparing like quotes before you consider asking for a price match."

Now, this may seem like an obvious statement to make. After all, you're not going to get a Maserati for the price of a Kia. But there is a perception about web design (and to some degree, design in general) that it's somehow easy to do and requires very little time or effort. I'm not going to try and convince you that web design is super difficult but it does take a lot more than simply owning and using computer software. It doesn't make things any easier when prices for web design are all over the board, ranging from bargain-basement priced templates to full websites that cost upwards of tens of thousands of dollars. How to compare can easily get overwhelming and frustrating, especially for the small business owner just starting out. But therein lies the problem: focusing on price.

Trying to compare a $200 website to a $2000 website is unrealistic and not much of a comparison to start with. Yes, both will give you a presence of some sort on the Internet. So what's the difference? The difference is not $1800. The difference lies in the process that took you from not having a site (or having a poorly performing one) to having a site that factors in usability, accessibility, search engine optimization, your business goals, ROI, conversions and a whole slew of other things that aren't obvious when looking at nothing more than the veneer or the price tag.

The difference is also in whether or not that site is going to bring you the results you expect. What we're talking about here is price vs. value.

"In simple terms price is the same as affordability. It comes down to whether or not your prospect has the means to pay for your product or service. Let’s say for example I am selling a widget for $10,000. Mr. Prospect loves my widget but when I tell him the cost ($10,000) he comes up with reasons he can not buy my widget. Unless I can quickly asses the problem is Mr. Prospect does not have $10,000 I will be wasting my breath telling him what a good deal my widget is and how many other people have paid $15,000 for the same widget. The bottom line is Mr. Prospect does not have $10,000 to spend.

"Value on the other hand comes down to whether or not Mr. Prospect thinks my widget is worth $10,000. Mr. Prospect wants to see what the widget is going to do for him and how his life would be better with the widget."
Source

If you focus on value, you'll be able to make a better decision on what's best for your business. In other words, if you look beyond the price tag and instead see what you're going to get for the amount you're spending, as well as what potential results you could have in the long term, you'll be in a much better position to make a good decision for the health of your business.