Pricing Quesiton

Originally Posted by pyrrhus ive deicided to quote him 4k CDN

So that's $1.75 US, right?

Just messin with ya

cdn dollar is on the rise!

Yes I do pyrrhus. I'll attach it here along with the receipt.

Please be aware that you need to be very accurate with your numbering, I have a text document specifically for what invoices are for what, and the numbers etc.

I use the bottom section for clients that are paying me monthly maintenance, and for clients who have a total quote and are paying it off by instalments.

Also edit it to suit your business.

Attached Files

	Invoice 400119.zip (19.0 KB, 74 views)
	Receipt 400119.zip (18.9 KB, 52 views)

Thanks for the above files, ill use them in the future... and you will understand why after u read this:

Ok so i sent the guy a invoice for 4000 CDN and he replied by email with this:



"Hi Mladen,

checked out your invoice last night and I have to say
I was blown away. I'm not sure who helped you with
your pricing, but for future reference you were $1000
more than the most expensive graphic design co I got a
quote from(website excluded), and they're a
professional company. That's why I went for a student,
usually they're more affordable. And another student,
grad last year, quoted me $3200 less on the exact same
items that you quoted me for. So it would make no
fiscal sense for me to go with you at this time.


Good luck and if you'd like to do some work for me in
the future, I'd still be open to it as you're a nice
guy with good, clean designs."

----no way im doing this for $800

It's because your first impression with the client was as a student. People go to students for cheater rates

I agree with Bennett. His perception was that you'd come in as the lowest bidder.

Kudos on quoting as a professional adult though =) First step to many.

P.S. Any clients calling a "quote" an invoice are not likely going to be in business long? An invoice basically means "services already done and owing"...

One last thing... This guys is planning to open a coffee house... Do you know how much coffee he'd have to sell to pay the $4k? lol, In perspective, a lawyer needs to work for 8 hours to pay it... This guy needs to sell 4000 cups of coffee... $4k to the coffe guy can put him out of business... $4k to a lawyer is supercharged Mercedes or not...

Coffee guys get quotes from students case they have little money(usually)... Professionals get quotes from real companies who can solve their problems... Identity to a professional is much more important than a couple grand.

All about knowing your target audience and what they are "willing" to pay.

The logo etc is part of the investment, it comes down to 11 cups a day to pay for all of that over a year at your PROFIT rate (1 CDN/coffee).

The website and logo etc will last for a long time and they should be selling well over 100 cups a day.

Omg, thats just pathetic, some people want things for next to nothing. I spose he buys all his coffee products from China? All his workers are illegal immigrants who don't know better etc??

Kork, you're wrong. If $4000 cups of coffee would put him out of business, then what would having no identity/website/signs and business cards do to him???

$4000 is stuff all for an identity/website. I have quoted this much and more many times. I have only lost a few quotes due to pricing, because of the way I sell the value of the quote. I just got a quote accepted for coding a single page/single design website for $500.

All this guy was after was cheap labour. Wanting to pay minimum to a youngster, like he will pay his staff. I really hope he gets crappy work and takes him forever to get his identity sorted.

I agree--that guy put on a front of frugality to save face, but the truth is he can't pay it because he doesn't have it.

Money is just an idea and different amounts mean different things to different people.

Clients who can't afford anything expect freebies and handouts all the time. They oftentimes get screwed because the only contractors who can cater to their unrealistic expectations are liars or people who shouldn't be doing it. The result is they don't trust anyone anymore and they expect you to cooperate with all kinds of micro-management.

Other clients can't turn around or sneeze without expensing thousands of dollars--and they love it, it in a very sick and perverse way. They want the best of the best and they think that means the most expensive. Oftentimes, they don't care how you get it done, or how long it takes, as long as you do what you said you would do when you said you would do it. They love to see brochures, reports, and paperwork--lots of paperwork--because it reinforces their feeling of professionalism and importance.

These clients can be large or small--size doesn't matter.

Usually if you are in the business of providing affordable services, or the cheapest, you attract one and repel the other.

The problem with being the cheapest is that someone is always trying to be cheaper than you. You should also offer middle and high-end services to attract the rest of the marketplace.

This is a lesson I had to learn very early on and one I will never forget.

You can also see this on a micro-level when you make choices at the grocery store as a consumer. Who buys the low-end products? Could they purchase the high-end products? Who buys the high-end products? Would they purchase the low-end products?

I think most grocery stores will offer up to 3 alternatives of a product-a high, middle, and low-end. We should learn to offer this service, as well.

If you are new you may be tempted to lower your rate because of insecurity or self-esteem issues. Some clients can sense that--do not ever let anyone use slight of hand to insult you. This guy said about 10 things to make you feel like you needed his approval before you would have any value. He even told you outright he will not pay you but the door is still open if you want to work for him.

Other things these clients will say are 'it will be easy' or 'it’s only a few pages' or 'my cousin's brother's uncle's friend's aunt told me she has a contractor who quoted the exact same items for FREE'. These words should raise red flags!

Always be as professional and courteous as possible, but do not give in. When I hear them I immediately quote the highest possible price and expect to never hear from them ever again.

You are worth more than anyone can ever pay you. If the client does not value your services they will not value your work. Even if you give them a discount they are still unhappy. They will drag you through several revisions/modifications of design because they don't have confidence in the work that you do. DO NOT GIVE IN.

What would a doctor, attorney, or CPA say to a statement like the one you posted here? If they can't afford you they can't afford you.

One thing I will say is you should figure out what type of services you are offering, who your competitors are, and who your customers are. If you are completely overpriced for your market it will be tough finding clients. The ones you do find will be big but it will be scary for you not knowing when you will find the next one. Try to offer a full range (high, middle, low) of services and price them based on the competition in those ranges.

Hopefully your rate is not PFA (plucked from air) figure. Once you know it is close to what competitors are charging you can have confidence in sticking to your guns and you will more readily recognize the type of clients who are just being rude (like this one) vs. the ones who are being real.