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Why are clients shocked by the price for web development?

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Re: Why are clients shocked by the price for web development?

#81
Essentially, you're shocking your client with price because you haven't adequately explored and quantified the value of the benefits you're providing to their business.

Anytime you are building a web application, you are actually solving a business problem for your client. For example, that problem may be more driving sales or reducing staff time spend on a particular task.

You need to spend time diving into this with them to figure out what your project is really about. Then you can ask targeted questions to the client. For example:

"So, right now you're telling me that Jan and Ella are spending 20 hours a week processing the proposals. If we could reduce that to 5 hours per week, how much would that save you?"

"If we could improve the conversion rate on your flagship product by 10%, how much would that be worth annually in new revenue"

Once you've asked some questions like this, you can then position your price relative to these other values that the client has affirmed for you.

All of a sudden, it makes it much harder for them to feign shock at paying $25k for a system which increases revenue by $250k in the first year.

If you're not working with clients who have valuable problems to solve, find clients who do.

Re: Why are clients shocked by the price for web development?

#82
post #41

Earlier quoted context omitted.

Stuff like this is why I usually set my smallest clients up with a static html generator. (At least if they don't want comments, and then we consider Disqus before wordpress.) It is really hard to have vulerabilities with static html. Similarly, hosting these costs nothing. Usually in the ballpark of $3/year, the DNS alone is the dominate cost. And if they do get a sudden inrush of traffic, static hosts need to see a…

Just wondering, where do you get static hosting for $3 a year?

There's also https://www.nearlyfreespeech.net/ which offers static site hosting for $0.01 per mb/month

Re: Why are clients shocked by the price for web development?

#84

Earlier quoted context omitted.

Just so you know, semiskilled housecleaners charge a lot more than $25 an hour. Car mechanics $60-$120 an hour. Plumbers $80-$120 an hour. When you charge $25 total for a trip to his facility, the time to understand his business problem, and an hour of setting up software for him, you are telling the client "I have no skills and am not worthy of any respect. Please abuse me."

Well I didn't have to go onsite for this, or I would have definitely charged more. Though I would say that installing PHP scripts to web hosts is closer to semi-skilled labour since it can be (and frequently is) done by teenagers. Plumbing or mechanicing have a higher barrier to entry since you usually need certifications and a significant outlay for tools/transport/premesis etc.

You'd be much better off basing your billing rate on the value that you're providing to the customer, rather than the cost/time that it takes you. This is a very basic business skill, but it's not always apparent to those of us who just like to build things, whether we get paid or not.

Try to get comfortable with the idea that you deserve to be paid very well for your work. (It's something I've had to do.) In my case, it was very uncomfortable to send that first message with my new higher rate. But I spelled out the value of the work I was proposing (which had obvious benefit for the client, but also bolstered my own mental fortitude), and the client happily agreed. And now the client is "educated" as to what this type of thing is actually worth. :)

Good luck!

Re: Why are clients shocked by the price for web development?

#87

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HackerNews: Step 1: Contribute to conversation Step 2: Link to your own business as an example.

I think you forgot step 1

Re: Why are clients shocked by the price for web development?

#88

Earlier quoted context omitted.

Just wondering, where do you get static hosting for $3 a year?

There's also https://www.nearlyfreespeech.net/ which offers static site hosting for $0.01 per mb/month

Spot on. These are the guys I use, they are great.

The transfer rate is $1/GB. If you don't have many pictures and serve pre-gzipped html/css/js (needs a custom .htaccess) the bill can be very low.

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